~ 2448 min

Bloomberg Livestream - 2022-08-23 00:00:00

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Of athletes fighting to have agency and power in the terms of their work And who they do it for. Martial arts used to be pretty culturally and legally fringe in the United States GPE . It was banned by most states John McCain PERSON had famously called it human cock fighting. There are some rules in the UFC ORG but to a large extent Words of body parts and tactics and attacks are on the table and people get Be injured at times. My nose has been broken multiple times. Actual torn off how to get that reattached. The two CARDINAL places about my neck broken. The ankle broken had to get that repaired. He broke my eyeball. I mean the bone that holds up my ball. I've had my left eye orbital fracture twice where my eye caved in. But I knew don't blow your nose or both eyes as well. At the time that UFC ORG was bought for just two 1 million dollars QUANTITY By the former boxing coach, Dana White PERSON , and a casino owner. He'd been friends with Lorenzo Fertita PERSON and his brother Frank Fertita PERSON . Was struggling as where other mixed martial arts promoters. It was pretty much a fixer upper. The money that they spent to actually purchase it for two 1 million dollars MONEY was much less than the money they quickly had to sink into it in order to revitalize it. They pulled off a multi-pronged strategy that was quite successful. First ORDINAL they did what white has referred to as running towards regulation. They found ways to make compromises with state regulators So that the sport would not be illegal. And at the same time they also popularized it they made gambles like paying the production costs themselves for the first season DATE of a reality TV show the ultimate fighter on Spike TV For weaving compelling personal narratives and rivalry people throwing shoes I coming to the octagon with who let the dogs out playing while he was dragging another guy on a leash. My first ORDINAL contract with the UFC ORG is kind of an interesting story because here I am on this reality show the ultimate fighter and they started to realize how big of a stepping stone this was going to be for the UFC ORG status all down individually put a contract in front of us and said Hey we realize that this is gonna be huge and we really wanna have you all a part of this UFC PERSON family moving forward so we wanna go ahead and get this out of the way just sign this simple contract and we'll be able to move forward as one CARDINAL unit What is I'm looking at this thick contract and wondering what I should do Dana White PERSON looks at me and says Don't worry this thing takes off we'll take care of you The fighters would say at the heart of UFC ORG 's power is the contracts that it signs with fighters. Before boxing had competition boxing used to be dominated by a few dominant promoters and the contracts were ported over from boxing and the contracts are basically designed to control every aspect of a fighter's career. There are long term. They last multiple fights. Fighters under these contracts Are bound to fight only for UFC ORG for a period of time. And UFC ORG can extend that time if a fighter declines a match or if a fighter gets injured Take control who the fighter fights they control when the fighter fights and then they have a number of different classes that make it very difficult for a fighter to ever break free from the UFC ORG if that fighter ever did want to become a free agent So one CARDINAL sided there really is no negotiation room for any of the things especially as your
See if that fighter ever did want to become a creation. Are so one CARDINAL sided there really is no negotiation room for any of the things especially as you're coming up and as they're strangle hold on the sporter MMA got so much stronger Part of what's at the heart of this lawsuit is the ways that UFC ORG Competitors The UFC ORG has such a strangle hold on mixed martial arts and as they were buying up so much of the competition shutting them all down. They really became the the only option for anybody that wanted to do this professionally. If you follow Dana White's PERSON Twitter PRODUCT or watch him on YouTube ORG you could have seen Dana White PERSON calling himself the grim reaper in bragging about how he has Defeated PERSON or derailed or acquired There another That tried to compete with the UFC ORG . In 2011 DATE UFC ORG acquired strike force which at the time was the most prominent rival still standing. The CEO of Strike Force Scott Coker PRODUCT Said PERSON in the past that he saw himself like Luke Skywalker PERSON up against the death star trying to compete with UFC ORG . When strike force was bought out by UFC ORG The option was go to Contract. Now, I'm under a contract where it's only a 18 month DATE contract with six CARDINAL fights but 5 years later DATE , I'm still stuck in the contract. The month DATE before UFC ORG 's parent company Zufa PERSON It's acquisition of strike force. A UFC ORG executive Send an email and the subject line of that email was we own MMA. In the UFC ORG has admitted in documents that have now become public that they've almost never lost a fighter that they wanted to keep. Internal UFC Emails ORG . We now know The company referred to what it was doing as choking off oxygen to the competition. The most important oxygen that UFC ORG allegedly Ran a foul of the law by cutting off to its competitors is the fighters themselves. Martial arts world there is no negotiating. Very strict never ending contracts and that's the case to this day DATE . You'll see just says oh you wanna fight for us you sign here if you don't want to we've got 20 CARDINAL other guys that'll take your spot 7080, 90% PERCENT of the top fighters under exclusive contract. Meaning that those fighters are not available to any other MMA promoter. In fighters, even if they wiggled their way out of the very restrictive contract that you have seen post on them Did PERSON n't have another Mixed NORP martial arts option There weren't robust rivals to go sell their work to. On Tuesday DATE afternoon TIME a class action lawsuit was filed in US GPE district court in San Jose GPE against Zufa NORP LLC with fighters Attached to the soup. Came to me and says hey come I know this lawyer he will help get the fairness for the fighters on you know in in the marketplace and I decided I wanted to step up for all the fighters that being affected
Help get some fairness for the fighters on you know in in the marketplace and I decided I wanted to step up for all the fighters that being affected at the end of 2014 6 years ago DATE now group of now all former fighters Auntie Trust ORG class action lawsuit against UFC ORG In broad terms the case is an anti trust case where we're claiming that the UFC ORG is both a monopoly and a monoposony. Hey when we talk about monopoly we're talking about the power that a company has when it becomes the only one selling something monoposony is about the power of being a monopoly purchaser of something in particularly a monopoly purchaser of labor A key argument in this lawsuit has been about as UFC ORG succeeds and it's revenue source how much should we expect Absent illegal conduct. The fighters pay would soar as well. In UFC PERSON After year DATE the share of the company's revenue that goes to actually The workers doing the fighting has hovered around or below 20% PERCENT and what does analysis shows through complex statistical regression modeling is that if the UFC ORG Was competitive and did not allegedly violate the any trust laws it would pay its fighters 50% PERCENT or more of the revenues is generated just like baseball just like hockey just like basketball If instead of paying 20% PERCENT of the revenues generated it paid 50% PERCENT or more of the revenues generated The fighters would have made $ one MONEY . 6 billion more during the period that we measured 2010 to 2017. When you write about allegations against companies in particularly about lawsuits against companies those companies Don't wanna say a whole lot about them Are pretty dismissive of the significance of litigation against them UFC ORG in their comments to me Been pretty feisty about this saying that they see this lawsuit actually as a threat to the ability of businesses to take risks in succeed They don't wanna Roll over. That they want to fight it and they want to defeat it. The fighters I talked to describe having side jobs Reliant on UFC PERSON in part because Taxes ORG and expenses they weren't making enough money to feel financially secure. Overview of my career from a financial perspective is you know something I've had a challenge in admitting I could tell you now that I lived in my mom's Natash garage the entire time I was fighting in her head Second ORDINAL job is about turn a bartender a third ORDINAL job as a personal trainer just to make ends meet. Nate Quari PERSON told me that over his time in UFC ORG he fought fights while he was tens of thousands of dollars MONEY in debt coming into the fight it gets so disheartening because I've seen fights that are called the fight of the year this is just a Brutal war. Battle for four and a half DATE rounds until one CARDINAL guy's body just gave up and then you find out oh that guy made $60 thousand for that fight In one of the hearings in this lawsuit Attorney argued that if the fighters were really the product if all that UFC ORG were selling were the fighters then the fighters wouldn't need you to see it all that Fighter is not The UFC ORG product any more than An Apple ORG engineer who makes a cool iPhone ORG is the product that Apple ORG is selling. We the fighters make this whole thing happen and it's been driven by Chuck Ladell PERSON . It's been driven by writing guitars, been driven by Conor McGregor's PERSON , been driven by Brock Lesnar ORG , has been driven by all the greats that have walked before us and that walked this path right now. We are the product. If the fighters are not the product,
This path right now. We are the product. If the fighters are not the product, then go ahead and release us from our contracts. You'll do fine without us. Clearly, it's the identity and rank and popularity of those fighters that attract the eyeballs and make the sport what it is. And if you can lock all those up and keep them from other promotions, you can dominate Which is what they've admitted they've done. William Isaacson PERSON a lawyer for UFC ORG set in a statement that UFC ORG has spent many years building a world class organization in hansing the brand of our athletes and championing the sport of MMA. See patients fighters more than any other MMA promoter with average fighter compensation rising by over 600% PERCENT since 2005 DATE . Our efforts have raised the global popularity of the sport and the overall revenue potential of all MMA organizations and athletes. In Of 20 CARDINAL the judge announced a crucial step in this lawsuit which is that he is going to certify it as a class action. Class certification This lawsuit a much more significant threat to UFC ORG and the judge made clear long before saying how he planned to rule that he expected whatever he did to be appealed into federal appeals court and on from there to the US Supreme Court ORG so we are likely in for many more In years DATE . Wrangling over this. Kyle Pingsbury PERSON said that he doesn't think any settlement would be acceptable unless it includes a change to the restrictive contracts that UFC ORG uses to keep fighters bound to the UFC My son's about to turn 6 years old DATE and it started when he was in the womb. You know, we're we're in this thing to the end. To change the sport forever we want the same freedoms that are offered in any other major sport we're every other major sport has gone through what we're going through right now People tell fighters. Yo ORG , just shut up. How lucky you are. Well, no, actually, we're fighting for what we believe in We're gonna continue being fighters. That's how we, how we're made. Every nation that's a coastal state has some region of the sea floor that falls within their territorial waters and many countries including the US GPE the area that's underwater exceeds the area Above water. So, huge amounts of nations, areas, and regions are just really unexplored, uncharterized. We know really know what's there. We know less about our sea bed than we do about the surface of the moon or mars. Only 20% PERCENT of it has been mapped. A map of the sea floor could lead to all kinds of discoveries like new marine species and rare earth minerals like cobalt that we need for electric cars and mobile phones. The value of all the gold deposits alone on the sea floor is estimated to be around 150 1 trillion dollars MONEY . I'm up could also help us when tragedy strikes Like 370 CARDINAL disappeared from radar.
150 1 trillion dollars MONEY . I'm up could also help us when tragedy strikes 370 CARDINAL disappeared from radar screens the mapping of the ocean floor is being carried out problem is that the southern Indian Ocean LOC is just so incredibly huge to me Fundamental piece of understanding of who we are, where we are, where things are, once you understand something, you start to value it more Preserving PERSON it and keeping it going. A map is the first ORDINAL step. It's the basic understanding that you need to figure out where you are. Oceans. They cover over 70% PERCENT of the planet but most of what lies underneath is a mystery. The sea floor is a really fascinating landscape. We don't have a lot of data to describe the shape of it in detail. But in places where we do there are spectacular features. There's meandering channels with all kinds of interesting photography. There are canyons. There are sea mounts. Mid Ridges ORG all kinds of things that we see on land that are just basically hidden from us by the water. As it stands this is what a map of the sea bed looks like or that black those are the parts we haven't mapped yet. And most people think that the sea floor is actually mapped because you'll see a world ocean nap and you can see some shape of the sea floor but most of that is based on prediction roughly 80% PERCENT of what you see for the world ocean floor is modeled based on measurements of the sea surface height and a computation Based on gravity. In 2017 DATE the nip on foundation ORG and the general bathroom metric chart PERSON of the oceans or jebco launched sea bed 2030 DATE It's a collaborative project to collect and collect data ocean wide and create a complete map of the sea floor by the end of the decade DATE To do this would take one ship around 350 years DATE at a cost of up to three 1 billion dollars QUANTITY that's why data is harvested by all kinds of vessels From fishing boats to freighters. Because there is so little data It's important that Vessels ORG that are capable and willing to acquire data while when they're just moving around the ocean do so. So, we have a lot of data that's collected during transits. There's a lot of academic requirements to make data publicly available. There's industry data that's starting to become more and more available. There's government data. So, there's a lot of different ways that this data is coming in and it's a really messy And challenging puzzle to put together but what's exciting is that it's a puzzle to put together Since see by 2030 CARDINAL launch the area mapped has risen to 20% PERCENT and all the information collected is freely available. The more data we have collectively and other people can access the the faster the discoveries are made which really pushes forward are understanding it a faster rate than if you held on to that data and it was only you with that data. Things like machine learning and artificial intelligence are also going to kick in in the next decade DATE . Because with all this data they'll be able to make connections that a lot faster than perhaps we would have been able to which then again feeds our human understanding and also gives us new ideas new ways of thinking of expiration Until the early 20th century DATE mapping technology was simple Wait attach to a long rope known as a deadline. After the Titanic ORG sunk in 1912 DATE explorers proposed using sound waves to find its hole in the north Atlantic LOC this led to Sona PERSON the most common technique used for mapping today Operated by the schmidt ocean institute the falco is an 82 CARDINAL m long research vessel equipped with two CARDINAL multi beam so nar systems that have Deborah Smith PERSON and a team of other marine technicians to mark over a one 1 million square kilometers QUANTITY of the sea floor From somebody with AA rope with some knots to Our acoustics that is I call it math magic but it is incredibly advanced.
From somebody with a rope with some knots to Acoustics GPE that is I call it math magic but it is incredibly advanced mathematical technology to be able to measure the distance in time of travel of sound on a moving ship. Multibe mapping works by using Sonars so Sonar LAW is taking sound and the measurement of time so you have a multibean sonar and it sends out a ping of sound that sound travels to the water column hits to see floor and comes back to the ship and we measure that And we're able to calculate the distance. Each individual king of sound has many many beams. So, it looks like a giant fan across the sea floor and that fan is moving along the sea floor. So, you have many tiny little beams going across and they're travelling along a track. You can look at that data and look at both the peaks and the vall Three CARDINAL dimensional image of the sea floor. The accuracy of multime sonar really depends on the water depth that you're in. Think of it like a flashlight beam and if you're holding a flashlight and you're shining it on the floor, the closer you get to the floor with your flashlight, the smaller that beam is. If you have 400 CARDINAL of these beams all across, I think of 400 CARDINAL people holding a Which also means the smaller that you can find information or data about. So, it really depends on the depth of the sea floor in order to see how much you can define an object. This variation in depth means that mapping resolution will range from 100 CARDINAL by 100 CARDINAL m in shallow waters to 800 CARDINAL by 800 CARDINAL m in the deepest parts of the ocean which go down as far as 11 1000 CARDINAL m. Remotely operated vehicles or ROVs can then be sent down to investigate sea bed features up close The 1000 m mark it's four CARDINAL . Six CARDINAL Sea LOC floor on a recent marketing expedition scientists on the falcon ORG discovered a 500 CARDINAL m tall coral structure in Australia GPE 's Great Barrier Reef ORG the first ORDINAL to be discovered in over 100 Yes. Popular, well visited, well traveled, you know, we're still finding new things. You don't know until you map it and so until you get that sort of high resolution picture, you don't know the sand waves or the old riverbeds that used to be there or the waterfalls off the side of a volcano that used to Above the surface and now is below the surface. It's a little bit of everything. Think of let's say Hawaii GPE or some place where you see a volcano above the water. Picture that below the water. I'm really kind of obsessed with the whole concept of scale here. Although we can create threeD models and you know, kinda GPE come up with these visualizations. It's not the same as that feeling of looking Over this big landscape but I mean I think we'll get there soon VR and other kinds of technology but it's really Spectacular to think about especially with the familiarity that some of us have with these features like what it looks like. We look out at the ocean and it just looks flat. Maybe with little bumps. We really don't think about all of this that's underneath and it's really an amazing landscape that's just hidden from us. With more than 90% PERCENT of the ocean deeper than 200 CARDINAL m fleets of autonomous vehicles could make the data gathering process faster cheaper and safer A new discoveries might help with exploration of all kinds. I also think in this next Access PRODUCT to the ocean because of virtual reality and augmented reality and to that will allow us to sit in our living rooms and really experience what's underwater in a different way and see it this different alien planet
Since the dawn of man meet has been on the menu. Hey And even with growing trends of vegetarian diets and plant based substitutes around 89% PERCENT of the world population consider themselves omnivores. We have come a long way from our hunter and gatherer roots. We have managed to establish a whole Designed to feed almost seven CARDINAL . 7 billion CARDINAL people with maximized production and we managed to reduce hunger over the past couple of decades DATE . And although we've become exceedingly efficient at putting meat on the table raising livestock animals by the billions comes with its own set of consequences. If animal agriculture News to expand the way it has. There is a race that we won't be able to stop climate change. But with rapid advances in technology we might soon see a food industry that leaves all those problems behind. I'm about to be one of the world's first ORDINAL commercial customers for lab grown meat cultured meat to eat just as the company and I'm very very excited. Here is the chicken It's pretty crispy outside. It's really good. I mean, look, it's really tasty. Here at 1880 DATE in Singapore GPE culture chicken is being served under a regulatory approval granted by the Singaporean NORP government It's the very first ORDINAL time a cultured meat product meet made from animal cells grown in a lab has been approved for commercial sale. Eat just the company behind these chicken nugget style dishes is based out of San Francisco GPE and got their start in 2011 DATE developing plant based egg substitutes like mung bean scrambled eggs and mayonnaise But it wasn't until 2017 DATE that they announced they were shifting focus to a cultured meat product In order to feed the world that we live in a large animal protein we need to take a third today DATE and it'll be more tomorrow DATE of our world and make it dedicated to feeding chickens and cows Areas that are filled with biodiverse rainforest taking a bulldozer to them and planning soying corn feed the chickens that we climate change is accelerated by the kind of animal production that we engage in when we bring animals in tiny little spaces Why do we need to cause any harm to any other living thing to have dinner that taste good Does not have to be that way and those things underly the force of The meat alternatives that have made it to the market thus far have been plant based imitation beef and pork made from ingredients like pea protein and coconut oil by companies like Beyond Meat and Impossible Food ORG That's a very different proposition from cultured meat which is made from actual animal cells. I'm a huge fan of any company of any person trying to make a product that's improving the food system including all the plant-based proteins
And my cells. I'm a huge fan of any company of any person trying to make a product that's improving the food system including all the plant-based proteins maybe in some future menu you'll have this kind of cultivated chicken and you'll also have a plant-based version that's fine but I guess you have to ask yourself in our lifetime is that diner likely to also Move the conventional option on the menu too. Permanent solution. Will an end game to this problem and we just think this is more likely to be that the path that you bet So animals cell technology has been around for several decades DATE Applications such as development of vaccines and other biotheriltics The first ORDINAL known prototype of cultured meats was done by mark posts earlier in 2011 DATE and essentially it was developing a beef patty PERSON it was a very expensive prototype if I'm not mistaken or above โ‚ฌ250000 MONEY at the time to produce just one CARDINAL beef patty PERSON Concept to really demonstrate that his technology is possible and that it can be done. But wait let me grow and produce culture chicken is essentially with isolate chicken styles from chickens without having to kill them so from a small biopsy for instance Be mercy cells in a liquid broth that contains the nutrients that the cells need to survive and be healthy and to grow we really need these cells to multiply to reach the numbers that are sufficient to make a meat product We're looking into the cells that are really important for me so we think about muscle cells, fat cells, by that isolation, we are able to form those muscle tissues in culture. The culture happens inside of a fermentation tank what we call the biorector which is essentially providing the same conditions as the animal body warm temperatures some serve mechanical stimulation so that the cells are exposed to a very similar conditions that they Inside of the animal After the cells were refraid and reach a certain density the final step is essentially to separate those cells from the liquid broth that they are in Make sure that the product meets our quality and safety standards and then those cells are ready for consumption. Milk, cheese, yogurt, a lot of those arrived from fermentations. The only difference is that they are starting from a different cell type. In this case we're just using the animal cells as the initial and beginning of the product. Eat just as developed chicken nuggets so far with far more textured chicken breast plan for the future. But another cell base meat startup meant this meat has already started working on culturing other animal cells as well. We've done duck we've done chicken and and these are things that our favorites and various parts of the world for instance you know people in America GPE love beef and chicken people in China GPE love ducks so we wanted to show that we at Memphis GPE meets can produce meats that we are the global population love to eat There's a lot of similarity on how we grow the meats from various animals or fish but they're also different because the nutrients they need and how they actually come together to form the final product the meat and I think it's very similar to how we also grow various animals there's similarities in the feed that we give cows and cakes and But there's also differences how we cultivate and it's very similar for us as well. So we've been working with the FDA ORG and the USDFD ORG for the last 3 years DATE and really developing the guidelines on how this food should be regulated when we come to the market as soon as we get regularly approval in the United States GPE people will be able to go to their supermarket and buy it and enjoy it they'll be able to go to a restaurant near them and order me directly from animal cells But it's not just getting the meat right once approved the gates open to a very high potential demand and scaling becomes the next big hurdle So that allows us to invest into allow the economy subscale to drop the price
Raises or drop surprises The nutrients we feed ourselves does the same things we need to drive that down the cell density is another technical element we need to continue to to increase that and hammering on those things of the course the next 510 15 years DATE we'll put it in a place where we're significantly below the cost of this animal protein and that will be one of the main inflection points that will will So here is a close up Of A half CARDINAL eaten Crispy PERSON chicken bite You know what? What I'm really thinking is Just I'm eating chicken. I like chicken. No The normal chickens eat. I don't know where they came from. And so I don't know why I should be very stressed where this came from either. The meat market is worth more than CARDINAL one 1 trillion dollars MONEY annually DATE and there are over 60 CARDINAL startups in the cultured meat field Cultured meat has attracted several prominent investors Richard Branson PERSON and Bill Gates PERSON what is also interesting is that even meet giant such as cargill and Tyson have invested in space it's this destructive potential of the the market as well as the promise to greatly The climate impact of meat production that has attracts the investors. It remains to be seen who will get regulatory approval in which countries and whether consumers will like lab go meet enough to make this switch and while there's no evidence that lab grow meat is any less healthy than traditional meat there's an ongoing debate over how healthy eating meat is in general. But if these products are a success they could be the beginning of a more humane less destructive meat industry. The food on egg industry is the most innovative industry in the world. It's always figured out how to feed a growing population. And we've never failed doing so. And it's been very clear to us that we are part of that and we're gonna figure out how to feed the next three 1 billion QUANTITY people joining us. And I just seen evolution. We can do this a bit differently. We can do this in a way. It is consistent with the kind of people that we wanna be. The kind of planet that we all wanna live in. We can build a food system that reflects really the best characteristics of who we are. And that makes me really helpful. Impossible foods might be the world's most ambitious company. Just listen to founder and CEO Pat Brown PERSON . People wonder how big the plant based meat industry is gonna be. It will be the meet industry in 20 years DATE . We're gonna look back and basically say, wow. Back in the day when we used to use animals to make meat. Yes impossible stated goal really is to replace the use of animals as a food production technology globally by 2035 DATE . That would mean supplying a $ one MONEY . 20 billion CARDINAL industry not to mention a source of sustenance as old as time. To be fair, the company has got a lot of people talking about its products. So, there's this thing called the impossible burger. Let's call the artificial meaning
As old as time. To be fair, the company has got a lot of people talking about its products. So, there's this thing called the impossible burger. Let's call the artificial meat, the realest, fakeest burger in the world. Not that. But before impossible foods can take over the world it's going to have to overcome strong competitors penetrate tough new markets and generally transform its product from a conversation piece into a staple food With the coronavirus turning the world of food upside down this could be the moment when impossible's new fangled meat goes main street. Impossible foods was founded in 2011 DATE when Pat Brown PERSON a long time vegan was nearing the end of an accomplished career in biochemistry. I've been a scientist my whole life and just came to this realization that by far the most important scientific question in the world is what makes me delicious? Pat Brown PERSON at someone call is for his mission. Really doesn't hold back when it comes to talking about wanting to completely replace animal agriculture. Producing meat from animals is the most destructive technology on earth and If we're going to avert We have to find a better way to produce speed Their digestive systems produce large quantities of the powerful greenhouse gas methane In fact it's estimated that livestock farming is responsible for nearly 15% PERCENT of all greenhouse gas emissions. Impossible claims it takes 89% PERCENT less GHGs 87% PERCENT less water and 96% PERCENT less land to produce its burger The key of course would be to get people to actually eat the thing which is where the company's secret ingredient comes in. Hey genetically engineered substance with a bloody iron rich taste like red meat. So him is a very controversial part of the impossible burger. It's also what makes the impossible burger what There are a lot of consumer groups and anti GMO ORG groups that oppose the impossible burger because of the heem. Studies on its safety are pretty short term but the FDA ORG has approved it and the company says it's Safe and there isn't any evidence that it isn't. Critics have also challenged the company's claim to health advantages over traditional meat pointing out that while the impossible burger has less fat sodium and calories then it's beefy cousin it's also more highly processed But let's be real we're talking about mimicking hamburgers here not kale salads. These burgers are definitely better for the environment so that's a plus but they are not necessarily better for your health. And the impossible burger made it debut in 2016 DATE . Their burger began it's life in the public when it was sold at David Shank's PERSON mama Fuku PERSON And they went from sort of higher and fine dining restaurants into high-end burger restaurants like bare burger and mommy burger and then suddenly they started popping up everywhere. This taste like a burger. It taste like meat. This is all made from plants. It's all made from this taste like beef. Does not just look like real meat. Just like a burger it taste like yokers. Relax. No. Doesn't taste like a burger. On the impossible burgers relative meetings but the debate itself was fantastic for advertising help in to propel impossible into major chains like white castle and then in the summer of 2019 DATE into more than 7000 CARDINAL burger kings across the US GPE . To date the company has raised over a one 1 billion dollars MONEY and a funding round in March DATE valued the company at around four 1 billion MONEY . But fake meat is a happening space these days and impossible faces some daunting competition. So now for the start of the hour and that is beyond me. Or plant-based protein company are soaring today DATE . E.
Daunting competition. For the stock of the hour TIME . Beyond me is also making a very meaty burger from plants. They're very non GMO ORG . They stress that all the time. To differentiate themselves from impossible. Five CARDINAL plant material to make it take on the the texture and appearance in aroma of of animal protein. Right. But we won't do that. Had one of the biggest IPOs of the year in 2019 DATE so impossible which is still privately held has some catching up to do. That you won't hear Pat Brown PERSON knocking his biggest competitor. But success they have the same mission we have the only rival we care about is the incumbent animal based industry Rivals or not impossible and beyond certainly agree on one CARDINAL thing the true prize isn't the American NORP market it's China GPE . 27% PERCENT of the world's meat is consumed in China GPE Prepared to just nine% in the US GPE . The Chinese NORP population eats a ton QUANTITY of meat they're huge market China GPE 's a really interesting case because they have long had vegetarian cuisine as part of their culinary culture and whether they are looking for meat replacements is still an open question. What we found in our reporting is that some consumers are excited about them. It it's just we don't know if it's gonna be enough. To improve its prospects impossible is developing a plant based replacement for pork. Globally pork is the most widely consumed meat. It's almost 40% PERCENT of all the meat consumed globally. Number one CARDINAL in Europe LOC , number one CARDINAL in China GPE . So, if we're gonna achieve our mission, pork is You know right up there. No word yet on when impossible pork will be available. This morning TIME growing concerns about the nation's food supply The impact of the coronavirus on the price and availability of meat has given a boost to companies like impossible foods. Over the 4 weeks ending April 19 DATE sales of plant based meat increased. But impossible has acknowledged some negative effects from the pandemic as well. This being a product that has primarily been served in restaurants they took a pretty big hit with all the food restaurant down although the company doesn't wanna say you know how much of a hit They have however announced some new retail rollouts recently they announced that they're going to be rolling out with Kroger ORG supermarkets and that that's big that's that's great for them. The question of whether this is like a long term See change for these companies. I don't know. Stop the way and see It's safe to say impossible stands a slim chance of achieving its goal of replacing the entire meeting industry. But it's early days for the science of plant based meat and it's not impossible that these products could 1 day contribute to a greener more humane future. In the meantime as the technology improves we get to look forward to many more years of this No this is impossible yeah that's what I thought this is the meat burger Tofu ORG burger or anything like that Very much.
What are is a strategically important point on the map of Pakistan GPE it sits very close to Iran GPE actually and the very southern coast it's about a 10 hour TIME drive west of Karachi GPE but it's only about an hour TIME drive to Iran GPE the area is extremely poor it's very aired it doesn't have enough Electricity has been very spotty. One CARDINAL of the most surprising things about visiting Guadar PRODUCT is the high degree of security that is absolutely everywhere. There are armed guards that are required to escort foreign visitors everywhere you go because it is contested region because there have been militant attacks in the past Despite all this guada is a key part of the China GPE Pakistan GPE economic corridor also known as CPEC ORG . The crown jewel of President Xi Jinping PERSON 's Belton Road PERSON initiative. We will leave no stone unturned. Materialize in time and in full. So far just one third of all CPEC ORG projects have been completed in guada none of them have been and the promised improvements for local people like job creation and better infrastructure have not materialized. So what has China GPE got to gain from developing this seemingly obscure city on the Pakistani NORP coast? We have seen this movie before an outside power comes in the Pakistan GPE . It spends heavily on big infrastructure projects. China GPE 's not the first ORDINAL to do it. Right after Pakistan GPE became independent in the late 1940's early 50s DATE the US GPE was sending advisers in the Pakistan GPE to help plants economy US GPE was doing infrastructure projects there too. Those early projects help the US GPE gain Pakistan GPE as an ally against the Soviet Union GPE during the Cold War EVENT . The US GPE has provided about 80 1 billion dollars MONEY in aid to Pakistan GPE since it's independence but overall the result is disappointing. One CARDINAL of the recent attempts was in the late 2000's DATE as part of the US GPE effort to combat terrorism in Afghanistan GPE The number one CARDINAL item on that A package was to build these high visibility infrastructure projects Propose GPE to the United States GPE In the 2000 DATE 's during that period that have become built in road projects China GPE is stepping into a gap which has been left by retreating ambition from the US GPE . Hey The Belton Road initiative is China GPE 's president Xi Jinping PERSON 's signature foreign policy initiative Launched in 2013 DATE it comprises an overland belt stretching through China GPE Asia LOC into Europe LOC and a maritime road A rain southeast Asia LOC through the India Ocean LOC and up past east Africa LOC So a benign way of characterizing China GPE 's belt and road initiative would be infrastructure for influence. The Belt and Road Initiative. Shortly afterwards, China GPE designated Pakistan GPE as it showcase flagship project. So, the China GPE , Pakistan GPE , economic quarter was going to be the biggest and most important showcase for this success of the Belton Road FAC . Pakistan GPE is in great need of infrastructure development. They wanted to create a railway, a highway, All kinds of economic development that is intended to help Pakistan GPE It's meant to provide jobs two. 3 million CARDINAL jobs for Pakistani NORP 's it's meant to provide a two CARDINAL . Five% boost to GDP growth And China GPE would gain economically as well. CPEC ORG was intended to reduce oil and gas roots from the Middle East LOC by thousands of miles QUANTITY away to cut over
Prowth Economically ORG as well. Deepak was intended to reduce oil and gas roots from the Middle East LOC by thousands of miles QUANTITY away to cut over land into western China GPE instead of going around southeast asia by ship. Projects in Pakistan GPE also provide Chinese NORP state owned companies within additional market Chinese NORP workers are brought to Pakistan GPE to build infrastructure and then take wages home. Sea peck is also strategically significant for China GPE and Pakistan GPE . China GPE wants to strengthen this relationship to counter their shared rival India GPE . An instrument of Chinese NORP power as well as a test of Chinese NORP power. If it succeeds China GPE will be demonstrating that it's able to do what great powers have not been able to do in Pakistan GPE including the United States GPE Which is why guada is so important. It's in Pakistan GPE 's beloches and province and area with serious electricity and water shortages. There are different ethnicity they speak a different language from the majority in power in in Islamabad GPE and they feel as the poorest province in Pakistan GPE they have not sufficiently benefit Economic achievements that the rest of Pakistan GPE has had That area is quite contested by the village and liberation army. The people who feel that even Pakistani NORP people have encroached into their territory. So quite a number of people are still staging attacks and they attacked the biggest international hotel in Guatemala Shot GPE up the lobby and killed I think five CARDINAL people But this unsettled city is where the China GPE Pakistan GPE economic corridor is supposed to lead to. His plan to develop Guada GPE into an international port city. Guadar Port FAC has an interesting history and an interesting location too. It's located in Bolucha GPE Stan PERSON . It's about 120 km QUANTITY from Iran GPE . Pakistan GPE purchased this territory from Oman GPE . I think in the 1950 DATE 's. And so for a long time, Pakistan GPE has had on its agenda trying to Actually approach the United States GPE in the 1970 DATE 's and tried to convince the Nixon PERSON administration to pay for a report even offered naval access if States GPE was wanting to pay for that The US GPE rejected Pakistan GPE 's offer concerned that the pork would not be commercially viable and would cause geopolitical tension But in the early 2000's DATE a Chinese NORP company was awarded the contract to build the port and they completed phase one CARDINAL of construction in 2006 DATE The port was then managed by a Singaporean NORP government entity. In 2013 DATE a Chinese NORP port operator took over from the Singaporeans NORP In 2015 DATE China GPE announced that it will expand the port as part of the CPEC ORG initiative but 5 years later DATE little has happened. When you look out at the port you can see it has only three CARDINAL births And all of them were empty And the only ship that was in the port at the time A Pakistan GPE naval forget. Indicated to me that the port is not particularly operational for commercial purposes and Strategic importance in the military sense Eventually China GPE were able to use the port of Guadar PRODUCT as a military base. You know, no one would be surprised if China GPE did use it in that way. I don't think in the short term like it is set up in Jaboti PERSON where it has a permanent base. I think it's more likely to use it as almost like a sort of forward based resupply option. Something I can use when it wants to. Other projects like building Pakistan GPE 's largest airport in Guada GPE and two CARDINAL special economic zones have been delayed and 19 km QUANTITY highway linking the port with the macron coastal highway in Belochester GPE is under construction too. Most of the people who live there and work there already are fishermen. They rely on access to the sea. The way that they highway express highway from the port was originally proposed would have cut off their sea access So that was AA real point of contention with the community. There have been some proposals to allow them at underpass.
Propose would have cut off their sea access and so that was AA real point of contention with the community. There have been some proposals to allow them underpass. It's still a little bit unclear how that is. It's finally going to be resolved. Even if those projects are eventually built, there are serious questions about who will work there. There is a problem with manpower of course in Guadara PERSON . It's a very small city and so one proposal has been well just shipped Chinese NORP workers and from China GPE and build lots of fancy housing for them. The first ORDINAL Chinese NORP build community in Pakistan GPE a 500 1 million dollars MONEY development spanning over 10 1 million square feet QUANTITY with over 60% PERCENT open spaces That kind of proposal is what makes a lot of the Pakistan GPE local people Sad Aguado based journalist express concerns to Bloomberg GPE over projects like this. The journalist spoke anonymously for fear of persecution from the Pakistan GPE government These projects are creating jobs but they're not really creating jobs for the local people of other you know not against economic prosperity but they're against the development that leaves them behind Pakistan GPE doesn't have the money to build these projects. It's gone to the IMF for its 13th bailout since the 1980 DATE 's. By engaging in CPEC ORG projects the government of Pakistan GPE is incurred more deaths from China GPE not only posing challenges for Pakistan GPE but possibly the international community if Pakistan GPE eventually defaults on its debts But CPEC ORG is still set to go on. Even if most current projects haven't been completed, the two CARDINAL countries have recently signed new projects worth 11 1 billion dollars MONEY . Pakistan GPE 's prime minister said the country's economic future is linked with China GPE . It's hard to imagine how the China GPE Pakistan GPE economic corridor is gonna be the game changer that the Pakistan GPE government would like it to be. We're not seeing the economic growth or benefit from the projects that were set out and we're supposed to seem by now we're not seeing the job creation Take delays accumulating debts commercial viability these problems of CPEC ORG are also typical of belt and road projects around the world For China GPE though it's never the narrow accounting perspective that matters it's the bigger strategic benefits as China GPE 's dollars continue to flow as China GPE 's concrete continues to pour China GPE 's influence continues to increase. There was some degree of runaway expectations I think there was also some degree that they weren't extremely forthcoming with the state of the game. The cyber punk 2077 CARDINAL story is very much kind of a story of everything they can and and will go rocking games development Jack PERSON is AI flipped out he wasn't there before. I can't shoot. The release of cyber punk 2077 CARDINAL in December of 2020 DATE we'll go down as one of the most disastrous game launches in history Instantly rewrote the narrative of its celebrated developer city project red. Larger studios with bigger budgets.
Game watches in history and it instantly rewrote the narrative of its celebrated developer city project red. Largest studios with bigger budgets weren't able to create the same quality of open world game. The inside story of the making of cyber punk to picks a process marked by unchecked ambition, unrealistic time And a focus on marketing at the expensive development. Project stock was at its high it was the largest stock in the Polish NORP stock market. Was supposed to be the biggest game of 2020 DATE this was a game that was sorry Keana Reeves PERSON this is a game that was from the makers of the witcher three CARDINAL this was supposed to be the big temple release the last year DATE and for it to become such a disaster for so many people I think we'll have pretty far reaching consequences City projects origins are somewhat unique in the games industry. In the west and Japan GPE delete 80s and 90s DATE were dominated by games through the home council market and characters like Mario PERSON and Sonic NORP the Hedgehog were becoming household names The same was not true in a post soviet NORP and economically depressed poland GPE . Most game was done on PCs and most games were copied and sold in small markets around the country. You could go to the market down the street in Northside GPE and buy and sell CDs and these two CARDINAL guys marching avinsky and Mikal Kitchinski PERSON decided they Start selling CDs and they wind up striking a deal with the people who made a game called Baldres Gate FAC which is kinda like the Seminole ORG role playing game in the late 90s DATE . It was never a business. It was kind of lifestyle. So, we're actually pretty bad with counting money. So, you can kinda think of it almost like You know where Phil Knight PERSON was selling shoes out of the trunk of his car. You know, you can kind of think about it the same way. It was, you know, just selling physical goods and then evolving that into AA much broader enterprise. CD project named for selling CDs would move on from just reselling games to localizing Western NORP and Japanese NORP made Into the Polish NORP language but it wasn't until 2002 DATE that the company would make its own game. The witcher. The witcher is a huge huge series huge fantasy series in Poland GPE and so it was a pretty big deal that these guys got the race to make the video games. The witcher book series is a source of national pride in Poland GPE and a CD project released the witcher too the video game series will become an important economic symbol for poland GPE as well the city project red had become this behemoth of an institution in Poland GPE and they were really big in the polish NORP technology scene because they were getting more worldwide attention than most Polish NORP Barack Obama PERSON came to visit Poland GPE . The prime minister actually gave him a copy of which you took. I'm not very good at video games. But I've been told that Is A great example poems place in the new global economy. But it would be the launch of the Witcher three in 2015 DATE that would elevate CD project red from representing the best of Poland GPE to representing the best of the games industry. I mean really a thing people look for first ORDINAL and foremost I think is that the game is just good and which her three CARDINAL was just a phenomenal game. There's a level of just storytelling and emphasis on on making every side quest count on top of the atmosphere the dialogue the character interactions the different ways stories can end they nail that other open world games felt empty and enforced and the developers of Gave PERSON excuses as to why there couldn't be more rich story or interactions Blew PERSON them out of the water. City project red was They were seen as a studio that was willing to make what the player wanted and to truly put in the love and effort required to make a high quality game that really connects with the people playing with it. For game of the year 2015 DATE is The witcher three CARDINAL .
Quality game that really connects with the people playing with it. For game of the year 2015 DATE is The witcher three CARDINAL . Which are three CARDINAL would go into an over 250 CARDINAL game of the year DATE awards but along with being a critical success for CD project who's also a financial success. Estimates put the sales of which are three CARDINAL at around 20 1 million QUANTITY copies in 2019 DATE A huge step up concerning by 2014 DATE the witcher and the witcher too had only combined to sell eight 1 million QUANTITY copies it was two CARDINAL large expansions for the which are three CARDINAL city project also helps separate themselves from other triple A publishers at the time. Unlock that so Stupid PERSON that this has to hold on. Other games and the most notorious you know one to do this was EA's Star Wars battle front two CARDINAL but they got really aggressive on microtrans actions in a game that already cost at least $60 MONEY you could have paid more if you bought the premium editions but not only was it that they were being very aggressive in Get you to spend money but you could actually get items that helps you win. Well gamers kinda PERSON draw the line in the sand there and they don't like them. City project had done this phenomenal job of marketing themselves as a gamer-friendly company. And I'll say it again. Here at City Project Red ORG . So giving everyone a bunch of free DLC ORG . Was an absolutely no brainer. Hey they said we're not gonna sell you DLC ORG that's like horse armor packs and other nonsense we're gonna just give you a free stuff and then we're gonna sell big expansions as part of the witcher three CARDINAL And not only were they really good They were offered at a fair price and this is a company that was seen as just like a company that really cared about quality and cared about it's customers and we're not doing anything to kinda GPE screw fans over the way that that fans see you at EA and activist and then all the other big publishers do. With a critically and financially successful game as well as the goodwill from the gaming audience all the focus which shift to CD projects next release 27 CARDINAL seven. It's actually funny. They first ORDINAL announced it through like a press release. And then they showed off a trailer. A vegan Flying cars lots of stuff but it wasn't really until after the witcher three CARDINAL that's began really like building up this fever's level of hype city predator wouldn't put out another trailer for cyber punk until 2018 DATE at Ethree trade show. And they showed off a it was like a 2 minute TIME trailer of cyber punk. Look pretty rad. And then they showed behind the scenes for Ethree ORG attendees for Press ORG and anyone else who could get score an appointment in there they showed this 45 minutes Emma and A blue people are like Welcome to the game play demo walk through of CD project reds upcoming title cyber punk 2077 CARDINAL the game player about Is from a work in progress version of the game everything you see is potentially subject to change. Paul Lee PERSON
Everything you see is potentially subject to chin. Paul Lee PERSON This if they can live up to what they showed me It's game over. It all looks incredible impressive. They had enough action, enough narrative beats with just the right amount of attention. They touted how each of these NPCs, their thousands CARDINAL of them, each one with their own daily routines and everything. We've greatly enhanced our crowd and community system To create the most believable city in any open world game today So yeah so people were certainly blown away by this demo at 183 CARDINAL awards and just people left the theater just in in where they didn't know of course is that the demo was completely fake. Fake demos are common at Ethree ORG . Studios put together bills of games to show off what they intend the game to be like rather than Actual state of the game. What was unique about this demo was that it was impressively long. It kinda PERSON plays into this idea that city project is very much on marketing driven company and so demos were really, really important to them. So, it's really important that they make the demo blow people away but it did. But that might have come with the cost of like some time they could have been A year later DATE at Ethree 2019 DATE fans will get another big surprise. He's welcome. Is really going to be breathtaking. You're breathtaking. The cyber punk trailers showed gorgeous Beautiful ORG lighting really cutting edge technology when it comes to the rendering of the game itself people are very excited to be immersed in this gorgeous cyber punk world they saw over eight 1 million CARDINAL pre orders which is a ridiculously large amount for any title to sell let alone Resell PERSON . Pretty much in a straight line. If you just look at like the polish NORP stock market like the wig index but on CD project stock was at its high. It was the largest stock in the in in the in the index. And that was around the time that they announced that We're becoming in April of 2020 DATE . Behind the scenes, people were pretty shocked that they were saying April DATE . I I don't think I sing all a person who worked on that game. Actually, thought they had a chance of coming out in April of 2020 DATE So, in April of 2019 DATE , I published an article for Kataku GPE about the making of a game called anthem which is a game from buyer where that was disastrous in many ways and the article kind of ran through why that was. Afterwards, I started hearing from other developers who Stories ORG to share that they said sounded a whole lot like anthems the deadline is unrealistic the direction keeps changing things are flowering we're going through a lot of problems this sounds exactly like what you wrote about anthem around that same time Perhaps go incidentally I heard from the CEO of Cedar Project LOC where I wanted to reach out to me specifically to talk about crunch. CD project red had a reputation for crunch especially during the development which are three CARDINAL there a management wanted them to have a reputation for treating work as well and not forcing them to go through so March DATE and co-founder and co-CEO of CD project red came to me and said hey I wanna make AA Right now that we're not gonna force anybody to crash that people will not have to work mandatory overtime on this project. Over the course of reporting Bloomberg PERSON has conducted interviews with more than 20 CARDINAL current and former CD project staff most of whom requested anonymity so it's not to risk their careers Decline ORG to comment on the process or provide interviews for the story. The company would end up delaying the game three CARDINAL different times first ORDINAL pushing from an April 2020 DATE release to September DATE then November DATE and once again December DATE
The company would end up delaying the game three CARDINAL different times first ORDINAL pushing from an April 2020 DATE release to September DATE then November DATE and once again December 2020 DATE As well as canceling some features and while those measures helped developers still said they were under significant crunch Including one CARDINAL former audio programmer who claimed to work up to 13 hours TIME a day 5 days a week and stating he had seen friends who had lost their families over this This was not a big secret in the office that a game was not going to be ready but A similar sort of thing happened with the richer three CARDINAL and a similar sort of thing happens with a lot of games where they don't seem ready until suddenly everything just clicks. Some of the best games ever made like would create it through this process. I don't know that it's the most efficient or the wisest way to make video games but it it's quite a lot of people too. I think that management there has genuinely To change it or at least said they wanted to change it but it is proven very difficult Change that when you make games in this one specific way. Game studios, some of them see crunch as part of their core culture. That all of their games that they've made under crunch have been successful. So, it must be a core element to the magic recipe for creating good games and that's So chronic overwork Degrades how effective someone is to the point where then it becomes negative and overworking them is just getting you less and less productivity. Having made the witcher three CARDINAL were kinda riding on that high you could call it arrogance or confidence or whatever you wanna call it of having made the witch or three and I think that like having a certain level confidence can certainly be a good thing but in this case it could also be dangerous because it kind of blinded them to the reality which was that this game wasn't going to Of us. Joni Pictures Entertainment ORG is reeling from what maybe the biggest emoji devastating computer hacking in Hollywood GPE 's history. Hackers attacked in waves first crippling Sony ORG 's internal systems then leaking five CARDINAL Sony ORG movies online. Today DATE the US GPE government pointed the finger a blame directly at North Korea GPE for the devastating cyber attack against Sony ORG pictures Tony PERSON pulling the plug on the interview saying it will not show the controversial comedy about an assassination attempt on North Korea's GPE leader. The Sony ORG pictures hacking was taken very seriously because it was an attack on the Free world. Freedom and our ability to exchange information freely have been disrupted by a country that we knew very little about. North Korea GPE has reportedly made attempts to steal COVID-19 vaccine technology by hacking from suitable giant fires. The justice department ORG has charged three CARDINAL North Korean NORP hackers over a wide ranging scheme that included the attempt theft of billions of dollars MONEY from multiple companies Despite so many attacks blamed on North Korea GPE It was not much known about the people behind the hacking attacks In my aim was to review who these people are and what they're like, what they're operations are like And on what your dreams and fierce war.
Am I aim was to review who these people are what they are like what they're operations are like And on what your dreams and fierce war. Man, man. My name is Sam Tim PERSON I'm a reporter for Bloomberg News ORG In our ruler story for business week about North Korean NORP hackers My story is about people who are sent from North Korea GPE to countries like China GPE For the regime Enemies And make money North Korea GPE is cyberbilities begin In the 1970 DATE 's with a lot of students going to countries like Russia GPE And even use Germany GPE to learn coding it was aimed at improving the predictivity of factories at home The current leader Kim Jong-un's PERSON father Kim Jong-il PERSON thought that it would be a good idea to develop a team on army of people who could have For North Korea's GPE military So they began this team of The hackers who would spy For the North Korea GPE regime and also go out there and make heart currency for the regime. I think Kim Jong-un PERSON takes The hacking ability more seriously than his father. He also enjoys. Text sadness as well You know he's often shown Travelling on his airplane Where on the desk there's a mac computer He understands the importance of computers you understand the importance of employing technology to improve predictivity. If he's economy North Korea GPE is an isolated country With it's economy From the US GPE and the international community basically it does not have the resources and and money to build a kind of conventional weapons that other countries are able to build so what happens is nuclear concentrates Resources on building nuclear arms and missiles which It's the kind of whipples that gives North Korea GPE an instant edge. Think of cyber hacking abilities in that context. Doesn't cost them much money But if you have the right people and if you have the right training Computer systems of other countries. That's what north korea GPE is after But if you consider the fact that there are only about a 1000 CARDINAL IP addresses in North Korea GPE available. And many of them are basically From Chinese NORP communications companies You can kinda PERSON tell why North Korea's GPE willing to send its hackers abroad rather than operate from within. What's the matter with operating from within? Well First ORDINAL of all he would mean that a lot of information would have to be Coming in from the outside world which could risk exposing the government and the people To whatever truth there might be about them so there they're sending their train Hackers to china in other countries where access to information is better. But at the same time because these are allies. And also because they have their diplomat station in countries like these like China GPE . Able to regulate and control these hackers better Formally North Korea PERSON denies engaging in hacking and describe tank to Jason's ORG to that As enemy propaganda. It took me at least half CARDINAL a year to track down these people it felt like a water goose chase in the beginning
And realize that there was a lot more to do in China GPE because he had more access information And he asked that he'd be sent back to china GPE . And there was also recruitment going on for people who would actually Do coding But really hacking for North Korea GPE so he applied and he got the job Once you got to the border he crossed by foot and from there he took a bus and then Winnie At the station he would spend years DATE in later he learned that that three CARDINAL story building in the heart of the city Was actually provided for free actually Bye a Chinese NORP man who had business ties in North Korea GPE There were actually two CARDINAL other people that I had met They all said that they go into this freelance website for programmers and clients from around the world would come. And give them orders. Give them jobs to do. Some of the jobs given to John were cracking open Commercially successful Antivirus programs. It was he was able to open that up. He replicated that program. Into another product which is quite would be packaged As a whole different part to be sold to other people. He also created what we now called bots. They are very popular on nine CARDINAL games. Including lineage. That would just roam around without any supervision. From the user Hey basically trade items without the user on that game He would throw that bar on lineage and sell it for almost $100 MONEY . Another defector said the money from client was wired primarily via PayPal to account control by reminders because they were the only ones with access to legitimate bank accounts. Tell how to make at least $100 thousand MONEY a year And he doesn't get to keep most of it. Actually, most of the money goes to minders to the North Korean NORP regime but if you don't need the quarter DATE . The reminders will That they'll put enough pressure on you. If that happens repeatedly You will face the growing odds of being sent back home. Among the three CARDINAL people that I spoke to and there's a common thing that they all tell me which is that when every Saturday DATE they have to do this propaganda session which Hey basically about gathering all the hackers together into a room and they have to recite Ever messages whatever lines come from Pyongyang GPE . About the cute family about socialism If you're a specimen someone who with a free set of mine that's stressful One CARDINAL person actually was really stressed out About North Korea GPE Once you're watching China GPE during the propaganda sessions you just couldn't take it Was a senior member of the unit that he belong to And he was good at Chinese NORP as well. Whenever the senior North Korean NORP official came from North Korea GPE . To check on the hiking units in China GPE . John PERSON with a company that official he doesn't provide me details But he calls you Unsavory ORG instant that happened between him and an official that he was travelling with. And that altercation Prompted him To the fact But there was no one that he could turn to after the facting He would Rome GPE wrong China GPE . He called me that he actually enjoyed it He actually enjoyed the freedom of You know not being known to anybody Just roaming around a country that was huge How did it make the money that he did to carry on?
Just roaming around a country that was huge How did it make the money that he did to carry on He did the same thing. He did. You know, at the North Korean NORP unit, he he would take orders. He would reverse engineers off to earth to make money. All of a sudden it's just He wanted to find a place where where he could just settle down He contacted South Korean NORP authorities. No. Last time I checked they had a baby He works for a softer company Ironically Company What keeps coming up in my head Even After I spoke to these people Is there was one CARDINAL common thing about them which was the sense of delusion Once they have access to outside We're able to freely roam in the internet. There was a sparr. And what they realize that there's a discrepancy between what they think is really happening and what North Korea GPE is telling them every Saturday DATE morning TIME that's when the spa gets bigger. That little fire. Is what eventually drives them To decide to leave Give me a few texts Huge ORG risk on your lives. Step into the shopping center of the future Since they started popping up in the 1950 DATE 's Malls LOC have been the quintessential American NORP shopping experience. Dedicated to the wonders and excesses of retail, food service, and entertainment. The rise of the mall coincided with the growth of the suburbs. Of the malls really is the 1970 DATE 's sometimes referred to as the mauling of But really thrived at Some sort of public gathering space some sort of social life in addition to actually giving people places to shop. Over the past few decades DATE before then lots of developers were building malls and it kinda coincide it with the growth of highways so as more people started travelling
Past few decades DATE before then lots of developers were building malls and it kinda coincide it with the growth of highways so as more people started traveling in interstate start being built developers really wanted to put something to attract people to stop. Take a look at an average American NORP mall today DATE however and you'll see a very different picture. Close stores and empty hallways became the norm in many malls even before COVID-19 delivered them another set of problems in 2020 DATE . So what happened This is the story of the rise and fall of american NORP malls. When malls work best they survived and thrived thanks to their anchor stores. Those are the stores that are on the edges of the malls and that are outward facing to the parking lot. So if you're a shopper, you're gonna walk through one CARDINAL of these big, usually a department store. So, if you're thinking about Macy ORG 's or Sears ORG or JC Penny PERSON Those are called the anchor stores. So once shoppers are done shopping there maybe they wander to the middle part of the mall shopping at the other apparel shops or even going to buy some food but you really had to have you know a reason for people to shop in the first ORDINAL place. Because anchors bringing all those people they tend to pay very little rent around 80% PERCENT of income from all owners come from the inline stores inside the mall. Over the past few decades DATE , malls have been facing challenges from all sides. The first ORDINAL being there's just too many of them. As early as in the 90s DATE the malls were beginning to compete with each other We have a lot more retail square footage per capita than Canada GPE . We have only seven CARDINAL times more retail square footage per capita than Europe LOC . Also had to contend with a new challenge that was growing fast. Mall started to suffer in the early 2000's DATE with the rise of online shopping. Suddenly, they didn't have that captive audience who had to go to the mall to buy something. You didn't have to get up, get in your car, drive all the way to the mall, and then see a bunch of other people. You could just do it from the comfort of your home. Department stores overall have become less relevant over the years DATE Have fallen totally off and that's Sears ORG JCPenney several bankruptcy in this space have have really hurt the industry. But as department stores go so does the mall often times so if department stores start closing locations that means they're usually leaving malls. This is the Greenbrier Mall FAC in Southwest Atlanta GPE Georgia GPE . It's in many ways emblematic of the problems facing malls today DATE . It's been there since 1965 DATE . So, for more than half CARDINAL of a century, it's been serving this area of Atlanta GPE . That's predominantly black Also it's middle class neighborhood It started with anchor stories that were department stores so we had JCPenney and then Riches ORG which was later bought by Macy ORG 's so you These two CARDINAL national chains It had the first ORDINAL Chick fil A in a mall like that type of format. So when you think about the history of malls like Greenbrier PERSON had like the perfect template. But now Macy ORG 's will be exiting the mall meaning that the mall will be left without an anchor which is vital to attracting other shopper Come into the stores. Ring Brio then because it's kind of an example or a test for all these other middleing malls across America GPE about what do you do when these large department stores as a business decision on there and are trying to just stay in the high quality malls how does a middleing mall survive What's there next strategy
Greenbrier PERSON is a textbook example of how closely the deterioration of the middle class in the US GPE is tied to the health of its malls. The median income for the surrounding area has reduced by $ 6905 MONEY over the past 15 years DATE to a total of $ 20756 MONEY per year and yet residents in store owners hope that We'll see better days Malls NORP are made up of the people and communities that help fuel them. Greenbrier PERSON is still a place that people go to and cherish even if on paper it doesn't have the elements that make it a thriving mall. Of the existing Near a big mall that had AA They're very To see that taken away from them Macy ORG 's is gone. Green Briar PERSON may try to take inspiration from what many malls were doing in the years DATE following the financial crisis. Focusing not on shopping but experiences. Dramatic as a water park or hosting like concerts to have people wanna come other than just to buy stuff. Having Instagramable moments making sure your store is pretty that people wanna take a photo and post it on Instagram NORP or Twitter Historically PERSON , the mall has always been a place for teenagers. You like to hang out, see your friends, and also kinda be seen at the mall and that hasn't completely changed like before the pandemic, about 95% PERCENT of gen Z. So, today DATE 's teenagers had gone to a mall in a three-month DATE period. So, teenager Hopefully you're really winning over a loyal customer for life. But thanks to lockdowns across the country most malls at one CARDINAL point or another were shuttered in 2020 DATE That means no one using the multibillion dollar MONEY American NORP dream malls indoor ski slow. No one going to the king of pressure malls indoor skydiving attraction Hey basically the pandemic gave malls what they didn't need another problem What would your net income or net operating income have been in 2022 DATE COVID and what is it now in a post COVID world? So, our views is roughly 10% PERCENT hit to net income over that period. That's Vince Taboni from the analytics firm Green St Advisors ORG which rates American NORP malls from A to D just like a report card and if malls did have a report card they wouldn't exactly make honor roll You're in the US GPE adding a 1000 CARDINAL malls in the country there are roughly 250 CARDINAL mi we grade a minus or better. The B and C quality malls which is the vast majority of the malls by count we think are on a negative trajectory and it's gonna depend on a lot of the local dynamics, ownership Decisions ORG around how much money do you invest in the property? Well, determine whether this, you know, mall can survive as retail Rapidly ORG melting ice cube A mall is really are doing just fine. Some of the most
Own mostly beat a D malls in the past few years DATE A malls really are doing just fine. Some of the most productive shopping centers in the country are super high yen so I'm talking about Bal Harbor Shops FAC down in Miami GPE Florida GPE there is Americana Manhassett PERSON in Long Island's GPE Gold Coast LOC the Grove NORP in Los Angeles GPE A lot of that has to do with efficiency of their properties so their sales per square foot are really high but also they've invested a lot in their actual mall cuz it has to look beautiful. It has to have all the services that that a So what will the future hold for less sought after malls that can't revive their golden years DATE ? For many of these malls, it will mean closure and then, hopefully, conversion. If they can't get AA new use to come in it's expensive but you can just demolish it Quite a lot of sights just sitting waiting Has been picking up more and more of those building their fulfillment centers Also a lot of community think this is an opportunity you know to read about It was never originally designed The number one reuse of an existing mall is as work space. It's actually pretty easy and just throw some carpeting down. Cut a few more windows And turn it into office space. Sort of number two CARDINAL reuse of malls is either in medical health care or education. Lots of great examples of community colleges all the way down to elementary schools. Moving into malls Then the third ORDINAL strategy that I still I wish happened more is actually just demolishing the mall and three graining Reconstructing PERSON the wetlands that used to be there and that frankly we never should have built on in Place. Pretty parks the gardens Post analysts save post pandemic retail shopping could breed some life back into the American NORP mall many are not long for this world. Depending on where you live it might be time to make one last visit. Grab some food. Do some shopping. Say farewell. President Trump PERSON traveled to Utah GPE today DATE where he dramatically cut back the size of two CARDINAL national monuments in that state. When former president Donald Trump PERSON announced plans to scale back two CARDINAL national monuments in Utah GPE there was outcry from a lot of people. One CARDINAL company in particular Really is a resistance brand. They've
Company in particular Liberal resistance against President Donald Trump PERSON and really put themselves at the forefront of that movement In 2017 DATE it sued the Trump PERSON administration for sort of slashing the size of these two CARDINAL national monuments in Utah GPE that were kinda meccas PERSON for for climbers it's set at the time joining the legal fracus was both extraordinary and obvious. So the company's general council ORG said it took exactly One CARDINAL email to the board. Lawsuits we're losing this planet. And And just let evil win. Patagonia GPE is in business to save our home planet And then Assholes PERSON out. Very implicit. Running up to the election Digital ORG tool to help people find the polling place And on that Digital ORG platform It says both the climate deniers out of office. Again and again on loop. This isn't the first ORDINAL time that taking a stand has paid off the Patagonia GPE The business which is now worth over a one 1 billion dollars MONEY was built on it. I couldn't care less about making more money. But by doing the right thing it always ends up making me more money. So is this all a Strategy is a sort of premeditated strategy who knows I mean shown art's been very From the start and makes no bones about He calls himself a dirt bag climber. Sort of a textbook marriage of Profit If you wanna understand the entrepreneurs studied at Juan Alinquin PERSON Cuz you know Saying you know this sucks. And I'm gonna do it my own way. Course like every other teenage kid I had no idea what I wanna do in my life. When I was 16 years old DATE I took off and drove across the country Went into the Wind River Range and discovered mountains. Patagonia GPE was born out of rock climbers first ORDINAL business she and art equipment which made in soul climbing supplies. Yvonne Shonard PERSON was a blacksmith in the 50s DATE and he started selling climbing gear at the back of his car that was last harmful to rock faces this is sort of The origin story of the company it's called itself the activist company A activist company 6 months DATE out of the year art is a blacksmith he makes mountain climbing gear the other half of the year he claims In 9068 DATE Evan Shenard and four CARDINAL friends including Doug Tomkins PERSON the late founders of the North Face LOC brand embarked on the ultimate road trip from California GPE where they were based to Patagonia GPE in Argentina GPE This trip The adoption Became a lifestyle and how these friends became pioneer of the outdoor in the street. She went out moved from selling petons to polyester and in the 70s DATE pattago
She would not move from selling petons to polyester and in the 70s Patagonia GPE was born. In 1973 DATE she went out and his wife Melinda PERSON opened the very first ORDINAL Patagonia GPE store in Ventura GPE California GPE where the companies had quarters remained today DATE Melinda Schuinard PERSON was the driving force behind many of the employee benefits like on-site childcare that helped the company achieve an impressive four% employee turnover rate The retail and consumer product sector average is more than triple that at 13% PERCENT . I do think that Patagonia GPE was a leader one CARDINAL of the first ORDINAL corporations to Into account, you know, the human capital and make sure that their staff, all their employees were cared for, in many ways, not just wages, but also they just cared about their people Patagonia GPE began donating 10% PERCENT of its profits to grassroots organizations in 1985 DATE this later became the one% ORG of sales that she and odd labels on earth tax For landscapes. For us living on this planet. While Patagonia GPE was creating the blueprint of how to be a socially conscious brand it was also turning a profit It even made ink magazines list of the fastest growing privately held companies. So every time the company makes a decision to do something socially environmentally active. Any of the other leaders of the company The more money Patagonia GPE made the more it gave away under its philanthropic program. Between 1989 and 1991 DATE the payroll group by 40% PERCENT . But trouble was on the horizon I think for 1991 DATE we are looking at a recession The question is how deep that recession is going to be and how long will be in it? Sales fell flat and the bank called in the company's revolving loans. A company that prided itself on taking care of its own laid off 120 CARDINAL people roughly 20% PERCENT of its workforce When we decided that we're gonna start doing things differently and we're gonna start running the company as if it's going to be here 100 years DATE . With a renewed sense of purpose Patagonia GPE was ready for what it called business unusual. It started with the costly move to recycled an organic materials before launching a clothing repair service to discourage fast fashion And Patagoni ORG 's influence was growing. What was intended is she went out's philosophical handbook for employees became an international blueprint for sustainable business printed in 10 CARDINAL languages. What's interesting to me is that all this I hate the term on brand but it's very on brand it really works for the kind of company he's created it works for the kind of employees he's been able to recruit and retain it all it's it's very seamless in terms of the identity Of him and the company and and what it means In the marketplace. It's over time the company's mission Marketing have become the same thing. The inflection point came in 2011 DATE Patagonia GPE took out a huge ad in the New York Times ORG That said don't buy this jacket And it sort of Got into the nitty gritty and You know, the carbon footprint and the water footprint that goes into, you know, a piece of apparel like a parka. And at the time shown art said the best jacket for our planet is one that already exists. So the company at that time said it need to address the issue of consumerism which coming from a for profit business hits pretty hypocritical. As the company encouraged its customers to buy less it's annual DATE sales increased by almost 40% PERCENT . The Stanson GPE . Talking about consumerism in a critical light while very much being a part of it. Fast fashion Tap on the list of environmental destruct And not just destroying the environment but impacting human.
Is top on the list environmental Impacting human health They are in the fashion industry there are clothing retailer To come head to head with that is courageous. You're not only Trying to create a product that'll last but you're also educating an entire generation of people In 2014 DATE Rose Makari PERSON was appointed a CEO. During the next 6 years DATE she grew Patagonia GPE into a one 1 billion dollars MONEY company what also scaling up it's environmental goals and bringing them all political voice to its activism Yvonne PERSON had this model where he was basically saying you can have a great business you can make quality product but you can also do the right thing By the environment, by your employees, by your community, and that to me was like the most holistic vision of business that I'd ever seen. So right now, Patagonia GPE has a team of about 20 CARDINAL people. Solely focused on activism and grants and this all comes at a time in the past decade DATE when consumers are paying much more attention to the social footprint of companies and where they buy their goods. So, what's happened is all this is good business for Patagonia GPE in the past 10 years DATE . Revenue and profit at the company of Quadruple NORP it's private but estimates are it does about a one 1 billion dollars MONEY in annual DATE sales which is sizable And that's part of the reason why it's been such a fortune cycle as it's ramped up it's activism and become more vocal on these things It's resonated with the market As the company branched out into other areas including adventure capital fund for environmental causes and sustainable food revenue reached a new peak of over one 1 billion dollars MONEY in 2017 DATE . But this was still small change compared to fast fashion heavy weights like Nike ORG who made 37 1 billion dollars MONEY that same year Patagonia GPE 's conscience hasn't always been reflected in its customer base either. Personalized bests have become the go to corporate uniform. And the expensive price tag has helped the brand and the nickname Patagucci ORG . It's expensive. Stuff. It's expensive apparel and that is part of their calculus in terms of the activism, you know, a lot of the more sustainable parts of the supply chain are, there's a premium for organic cotton or sustainable down. We've had a Gucci PERSON label is is a symptom of that. Go to the office and that's because of the image that the the brand projects and so they have to The fact although they you know preach for the environment I want to stand for good Things of the wrong success. Patagonia GPE set sales records in the first 3 years DATE of the Trump PERSON administration. Now, in 2020 DATE , things have changed. Is COVID-19 brought the business well to a halt and the American NORP people voted in a new administration Patagonia GPE appointed brian gallet as CEO. As far as it's CEO transition goes this one's happening quite strangely There there's no real budget for next year DATE yet because of everything that's going on and I'll be uncertainty around that. Patagonia GPE 's new focus is going to be on forging Relationship LOC with the Biden PERSON administration. It should be a more close relationship but gallery still has his guard up during the Obama PERSON administration they didn't always agree and he expects the same with Biden PERSON in the White House FAC They plan to bring litigation wherever needed against any government needed
They plan to bring litigation wherever needed against any government needed About the issues that they care about and that's climate change in the environment
Want more indoor outdoor options So exciting. Sustainability and everything we do. So, really forward looking. Good? Ok. From one CARDINAL of the newest work spaces at the google plex in mountain view California GPE this is Bloomberg Studio PERSON 100 CARDINAL . With alphabet CFO ORG Ruth Porat Far from her childhood home her father was a physicist at Stanford ORG her mother a psychologist after graduating from Stanford ORG herself and then earning a couple more advanced degrees poor at landed her first ORDINAL job on Wall St in 1987 DATE where she would spend almost three decades DATE until googles co-founders lord Two CARDINAL silicon valley. It's wonderful to be here with you. It's great to have you here at the Google Play. Oh, thank you for having us. So, we are at Google ORG headquarters in Mt. View FAC and at this very same time, you are making massive investments in New York GPE office. Real estate, you're expanding, headcount in Atlanta GPE , and Chicago GPE , and Washington DC GPE . What's the strate Behind all of this. Well, at the core, we believe in hybrid work. So, we do wanna bring people back on campuses but not full time. We're thinking of probably a three CARDINAL , two, work week, but we think coming together is just such a core part of innovation, serendipity, culture, every element of it. And we're growing in a really rapid So we are excited to be expanding our real estate footprint and then we also wanted to make sure that we're meeting people where they wanna be and so enlarging the number of sites that we have available for people in particular sites where you have great diverse populations told me that googlers will This option. Really forever. You're embracing this massive cultural shift but what are the risks you know what are you worry about So the positive we've seen is there's a productivity uplift we believe in giving people the opportunity to be at home some of the time not do the commute be able to deal with everything else in their life Coming into the office. So, the risk is I think about my career and so much of the benefit in my career was the informal coaching, being part brought into meetings, all of the touch points that you have and so, I think that one of the most important things for all of us is leaders Is we need to evolve the way we lead. We need to make sure that we're thinking about this hybrid work life and why that's the way to be the best magnet for talent and make sure that we're continuing to reinforce all of those great practices while opening up new great practice Speaking of your career before Morgan Stanley ORG and you started your career on Wall St in 1987 DATE talk to us about the journey of going from Big Banks to big tech Did you make that leap and what impact did you wanna have Well I'd love to hang at work and Stanley PERSON and I became CFO ORG the day James Gorman PERSON became CEO yes need to join him in that and that journey and that was January 2010 DATE We were still recovering coming out of the financial crisis. There were still some pretty rocky days and a lot of decisions that needed to be made and then I got to a point where I felt like we were in a great spot at Morgan Stanley ORG and obviously, it's continue to do really well and I just wanted that next chapter. My view in my career, I've always been focused on and I'm continually learning and I feel Hit a plateau the right questions what's my highest and best use and it's been it's been an extraordinary time. You also.
Continually learning and I feel like when you hit a plateau the right questions what's my highest and best use and it's been it's been an extraordinary time. You also survived Wall St in the 80s DATE and 90s. Which is you know notorious boys club. And silicon valley has sort of come to be known as a boys club of its own. How would you Those two CARDINAL cultures. Starting my career many To go it was much it it was tough and much worse than it is now and it evolved no question about it not where it needs to be but certainly evolved and I saw it through my career I would say the biggest difference out here is the level of impatience and I love it it's the view as if you can do some of the extraordin Breakthroughs ORG . That we have out here. If you can do natural language translation, everything we do with AI ORG , with VR ORG , with self-driving cars, why can't you fix this now? And that level of impatience, I think is fantastic. Legend has it that when you got to google, you were gonna rain in the spending, tighten up on the moon Your nickname I believe was Ruth Vader PERSON Was that a tough job to take on? I think the the narrative was written before I got here. Yeah. And what I find most interesting about that is I firmly believe the single most important thing in capital location is investing for long term growth. I think if you don't, you are sowing the seeds of your long-term decline and I learned that really early on in my career. Now, if you're investing In an industry like this and trying to do truly transformative things by definition everything can't succeed and so by definition you should have the metrics and data and milestones to assess is it working or is it not because if everything's working Or if you think everything's working, I would say one CARDINAL or two CARDINAL things are wrong. Either you're not reaching high enough You're not being honest enough with yourself about the pace of breakthrough whether you're gonna get there. So, to me, Natural part you know kind of a sister How are you doing with the risk that you're taking stack rack them and figure out what's at the bottom so you can redeploy those resources to the top they go together actually and so I find the narrative False choice. That it's either about growth or it's about pruning stack ranking. They go together and and you have to think of them as actually empowering one another. The treasury department during the great recession what lessons did you take away from that what struck me is a lot of the lessons from the financial crisis are relevant in good times and bad times so the most important is it's easier to prevent than to fix and and so you know there was that was really clear during the financial crisis the financial crisis was about Liquidity and it dried up quickly and it would have been really easy 6 to 12 months DATE prior to build in durable equity you couldn't do it in the moment and so this notion about really building a solid foundation on which you operate To do that ahead of time. It needs to be all of the work we do on trust and safety and content moderation, security, The foundation on which you can build everything else. It said to me you have to have the will and the means and too often by the time you have the will you no longer have the means his comment was be decisive act early even in the absence of information I think that's true in this whole notion Investing for long-term growth because if you're not actually assessing progress along the way and you just assume, you know, we can keep investing in everything. What time are we in now what's your read on the economy today DATE especially with ri Inflation. Hey look I think back to March of 2020 DATE and where we were and I think of all of the intervention and steps that have been taken since then and you've certainly seen the recovery coming out the back and and it's been really gratifying from those those painful days to see the the breakthroughs that we've had not just on the medical front but we've also seen Biggest concerns in particular is you're seeing us go through a digital transformation and the acceleration of it is ensuring that everyone has the skills.
Biggest concerns in particular is you're seeing us go through a digital transformation and the acceleration of it is ensuring that everyone has the skills, the digital training, and skills to thrive in this new economy. Google now reaches more than half CARDINAL the people on the planet. Why shouldn't we view google as a monopoly? We often say that people come to Google not because they have to but because they want to. It's really opening the world for for so many people. So, that's that's the intent. I wanna talk a little bit about regulation You were drawn to Eminem ORG in your early days DATE at Morgan Microsoft ORG is making some big acquisitions. Deals that some think Google maybe would have wanted to win in a former life. Is anti trust scrutiny constraining any of your business plans? And your ability to compete? So the main thing that we've done throughout our life of Google ORG is really invest in innovation. It's organic growth. And we're continuing to do that at a really rapid clip. We have then layered onto it. Tuck in acquisitions and larger acquisitions and we're continuing to be active. More than the smaller one CARDINAL Add ons to be fair but we think there's a lot of opportunity still ahead of us and so we're continuing to invest in partnerships and in Acquisitions and do you think that there's there's still upside in a lot of different areas. So, would you say this regulatory scrutiny isn't slowing you down? It's really important for those of us in certain leadership positions to be very focused on constructively engaging and working with regulators on what are the issues. What is it they're trying to solve and how can we constructively engage with them At the same time our engineers should focus on innovation and continuing to kind of up the barn everything we're doing address what is most helpful for our users google is facing more serious legal threats at this time in the United States GPE than the other big tech companies How are those conversations with regulators going are they frustrating At this point. Well, there's certain elements that that are frustrating because i listen to the outline of some of the proposed legislation and I think it's inconsistent with some of the priorities for public policy. So, as an example There are there's a lot of focus on what what is called self preferencing. Are you putting too many of your own products together? But during the pandemic one and three CARDINAL small businesses said they would have failed without digital skills Why? Because what they were able to do is connect with their users in different ways. So, if you go search for a small business, you can then go to a map and you can get directed to the small business. That's a good thing. We have 6000 CARDINAL small Businesses who wrote in and said, you know what? We need these digital tools and skills. The number of things on racial equity. A real
Good thing. We have 6000 CARDINAL small businesses who wrote in and said, you know what? We need these digital tools and skills. Same with the number of things on racial equity. Real surge and searches about where can I where's a black-owned business near me and the ability to direct people through search and maps. So, I think that once really important and Said PERSON it's about constructive engagement. Let's make sure we understand what they're trying to solve and work with them on what is it that we're trying to address through products so that the products are helpful in the ways that they want. Facebook has taken a serious reputational hit Has that had ripple effects or created collateral damage for Google ORG ? Well I think that whenever there's a backdrop that's that's It has ripple effects but what we're really underscoring is all of the steps and investments that we are making to really protect the ecosystem the way we our commitment to our user. So, we know how sacracy that trust is and it's all about privacy and what are the steps that we're Privacy ORG could protected for users. What is it that we're looking at to protect content and content moderations? Google now reaches more than half CARDINAL the people on the planet. Why shouldn't we view Google as a monopoly? So, you know, I go back to the earliest days when Google, Back in 1998 DATE and in those earliest days DATE , when I heard about this like eight CARDINAL search engine, the questions, why do you actually need it? And back at work and Stanley PERSON , it's working with our research channel. She actually had her team put up white pages all around the conference room Was doing this comparison well provided the most Result NORP most rapidly and all of a sudden you could see the wind at this google thing actually maybe we do need something new and that's been the ethos at Google since inception is just continue to innovate to make this eight never better experience for users and so if we can if we can deliver on that which is what drives people here It's really opening the world for for so many people. So, that's that's the intent. Facebook and Twitter PERSON are exploring digital currency. Is your thought on the crypto market and is there a play for Google So we look at it it there's nothing to to comment on now I think we're much more interested in blockchain in the underlying technology and the implications for the business and For the way we can support our cloud customers. So, certainly a lot of effort there. There's considerable chatter in the crypto universe that web three CARDINAL in the blockchain could the power of Facebook and Google and more. What do you think about the next frontier of the internet? At this point, I think there are a lot of different things ahead of us that are actually stunningly exciting that enable us to actually continue to address Needs and and requirements like I look at for example Something like health where I think blockchain will be very valuable when you think about health and health records. They're also a whole host of other areas where the data analytics that we provide are absolutely critical. Should we make excuses to our employer? Should we tell her like, if I have to head to a parent to teach her conference or take a kid to the doctor, do I tell my boss? You don't tell your boss. You've gotta get over the guilt.
You survived breast cancer. Twice. What was your biggest fear at that time and how did you overcome it? Well, the biggest fear was I wouldn't make it I remember when some someone had some interview while I was going through chemo said where do you wanna be in 5 years DATE and I froze cuz And I learned a couple of really important things Given breakthroughs in medical technology I learned to love the word manageable. These, this journey does become manageable, not for all cancers, but for many more cancers. And that gave me a lot of confidence talking with other survivors about it is manageable, get the best care, Just plow through it. I was just very grateful and grateful for all of the investments people have made over the years DATE . But for anybody out there and I think everybody sadly will be touched by cancer other than themselves or someone they know and love. Many of these cancers are manageable and just go at it with gust. So, that's what I did. You're a mom of three CARDINAL And I find that especially remarkable because I also have three sons You manage that over the course of this, you know, incredible career. How do you find that right mix of focus and free time to spend time with your family and doing the things that you love So my kids my kids give me energy. They're remarkable and I think one of the important things for me is this notion that you do have to have a mix. It's not about trying to find balance. The physics of which is really challenging. I think when people try for balance, they always feel their feeling on Cuz something's out of whack. Metaphor GPE that life is like a kaleidoscope and you need to have different shaped pieces of glass and different color and sometimes one is larger than the other and what's beautiful about life is when it's constantly moving around and so That metaphor has actually been sort of an anchoring principle. Other is you have to put the kids first so like they they know that I'm I'm there you know when they need always and And I think that just making sure that you're setting the boundaries the way you need to. I would say it's much easier today DATE than when I was growing up in banking. You know, we have a cubicle. There was a there was a computer room. You were anchored to the computer room. One CARDINAL of the many beautiful things about going through Evolution in work is understanding that hybrid works. So how do we get rid of mom guilt? In this new work world I want to shake my mom guilt how Okay. So, even when you feel it, just say, you know what? It's an investment in my career because I can stay in this longer and be operating at a higher level. If I'm really getting the stimulus from all parts of my life. So You've gotta drop the mom guilt and when on the other side mom guilt with kids I think they get it I think they understand what we're doing and you know I'll never forget during the financial crisis at one CARDINAL point I was working on AIG ORG we went around the clock I came home to shower that one like right as we were landing AIG ORG and my three CARDINAL kids At each written me a yellow sticky note with a message on it and one of them was you know they it the essence of which was I get why you're doing this and it and they saw it as The right thing for the country. I don't need to over dramatize what it was but that's what it felt like at the time and that level of approach.
You're doing this and it and they saw it as The right thing for the country. I don't need to over dramatize what it was but that's what it felt like at the time. In that level of pride, I still have those three CARDINAL stickies right by my bedside because It. I get the mom guilt. I wish there were certain elements I could could have done differently but I also see the relationship we have and they understand what it means to actually be engaged in society and doing something you care about. No mom guilt. No mom guilt. Thank Not allowed. Should we make excuses to our employers? Should we tell her like, if I have to head to a parent, teacher conference or take a kid to the doctor? Do I tell my boss? You don't tell your boss. You don't tell your boss. Guys don't tell their boss. Do not tell your boss you've gotta get over the guilt. The only way to move on from it is realize I'm a professional I do things when I when I can and it makes sense and I get it all done. I just do it on my own timeline. And I actually had a woman who emailed me So I'm gonna email you. Five CARDINAL step journey Do not tell your boss. Tell your boss, you know what? I need to do certain things for myself and I, it's, I'm getting, I've, I feel guilty, doing it but I get everything done. There's no question. You are so beyond having to check in with people. Yeah. Well, thank you. Do not. We're in the middle of this so-called great resignation and people are reflecting What's your advice People in this you know big evolution You know, a huge choices ahead. Well, I think you framed it really well. I don't think it's the great resignation. I think it's the great reshuffle and people are reflecting on what do they want and how do they wanna work and how do they wanna live their lives? So, I think for all of us thinking about what is that mean for our institutions? It is about evolving the way we We work the way we interact the expectations that we have to say but I grew up in a cubicle on the 26th ORDINAL floor of a sky rise doesn't work And so what should we do as leaders and I think that our this generation appropriately and it's very exciting More from all of us and so it's not just in how we work but it is in what we do and I think all elements of what's the mission are you delivering on the mission is really important. Okay, so if you rapid fire questions, someone you'd love Dinner PERSON with. Wow I'd love to see my parents because they passed away and over years ago DATE . Favorite family ritual? Do this crazy thing that we've done for years DATE which is everybody gets to pick where we travel We come up with the five CARDINAL the five CARDINAL different locations and then we all vote and then we get the grid and that's where we go. What's your favorite getaway? Probably I would say maybe Iceland GPE was the best. That's an amazing one. New York GPE or California GPE ? Ooh Energy from New York GPE so I'm not It's like my I don't pick amongst children. So, in closing, Google ORG 's a massive company, multiple divisions, many bets. Where are you spending most of your time now? I was spending most of my time on your very important question about capital allocation because if it really goes to this core point Intensity I often say I don't wanna get to the two CARDINAL yard line but not score so you need to make sure you're investing with the right intensity to support long term growth that's the most important area where I would say I The back of my time and then of course you have to prioritize in order to recycle to support those options what kind of discussions are you having with Larry PERSON and Sergey PERSON now about this next phase of Google ORG . So, when they need the announcement about the role of change, they really, they were very serious about moving to this board role and they've been their amazing board members. Sandars of course Relies on them and for council where wherever, whenever, but most of the interaction is really around. What are we doing at the board level? It's been great. And you have your freedom to allocate capital as you like. I work closely. And
What are we doing at the board level? It's been great. And you have your freedom to allocate capital as you like. I work closely. Philip and Thomas and yes, we we work as a great team. So, where what's the vision for google then? 10 years from now DATE ? You know it's fascinating to was I think I had the same reaction you did when I heard Cinder say search is the biggest moonshot and I think that continuing to find ways to be helpful to users to solve what they need wear so many people are coming online and it you know is video gonna be the first ORDINAL the way they understand it's gonna be You know, search is gonna be a different type of experience so much of it's gonna be about voice, first ORDINAL , and language translation. So, there's gonna, it's gonna continue to evolve. I want about for you personally, like, where will you, you know, It's been so amazing to hear about your journey and I'm just curious about your personal growth like What you feel you've accomplished in the last, you know, since you've been here and what you hope to I find that that the Opportunity ORG to try new things and to invest in new things and as we think about what is that mean for each one of our areas there's I think that intellectual curiosity keeps you young and I think that continuing to learn is like your brain is like silly putty getting pulled in a lot of directions so to me it's He was learning. Report, thank you so much for joining us. It's been wonderful. It's been great to have you on campus. Come back anytime. Thank you so much for doing this. Thanks for doing that. Sorry. Not at all. You're doing well? How about you come in I have to ask is your son still mining ethereum? He and I literally were talking about it last night TIME . He's like, dad, you are the one who made me give up on it. I'm like, no, no, I didn't but yeah, the thing that's good about this is I think it excites a whole new generation about technology which is which is good. Appreciate you. Well, thank you for doing it and thank you for coming down to do it. I'm ready to go From Google headquarters in Mt. View California FAC this is Bloombrook Studio PERSON one CARDINAL point Alphabet NORP CEO Sundar Pachai LOC . Had almost no access to a computer until college but just years later DATE found himself rising through the ranks of the world's largest search engine. In 2015 DATE it was pachai that google co founders Larry Page PERSON and Sergey Brin PERSON chose to run google and later alphabet Two 1 trillion dollars MONEY it's one CARDINAL of the most.
And later alphabet now valued it more than two 1 trillion dollars CARDINAL it's one of the most powerful companies on the planet Cinder PERSON , it's great to be with you today DATE . Thanks for doing this. Great to be here in person. Google just hit a two 1 trillion dollars MONEY market Alphabet ORG . I should say. Where is the next one 1 trillion dollars MONEY gonna come from? You know, all these fell you know Your market cap evaluation is an effect of the value you provide and I feel fortunate our mission is timeless You know there is more need to organise information than ever I still feel search is our biggest moonshot as a company. You know people will want radically more conversational experiences They will want what we call multi model experiences. They may speak to search. They may look at something and ask what what the information is. Being able to adapt to all that and evolve search will continue to be the biggest opportunity. We are so excited about Beat YouTube ORG cloud are are hardware products Google Play PRODUCT so we're building a diverset of businesses Underlaying all of it is the investments we are making in AI GPE invested 100 1 billion dollars MONEY in RND ORG in the past 5 years DATE . And so applying a eye in a deep way is probably where we will create the biggest opportunity ahead. Microsoft ORG is making some big acquisitions Apples anti ad tracking technology is shaking up the industry What do you make of these competitive moves? They're on the right side of history Are they? I look at the fact that There are three 1 billion QUANTITY people who have access to knowledge of their fingertips. I look at the opportunity we provide. I look at the skills people are learning through YouTube ORG . You know, I feel it everywhere when I go talk to people and and providing access to information and knowledge. I think we'll end up being on the right side of history as well. Your predecessor Eric Schmidt PERSON told me that he feels the latest Facebook revelations are disturbing. Google also has access to massive amount Why should half CARDINAL the world's population more than half CARDINAL the world's Trust google to do the right thing. We are trying to do more with less data One CARDINAL of the biggest changes we made was making auto delete the default setting for new user signing in and now over to uses have their data continuously being deleted. Look we rely on trust for people you know everyday when people come to Google You know they place their trust in us in vulnerable moments maybe a health issue on which they are trying to understand. Yeah there's no more important responsibility we have than doing right by that trust. You know when when we provide Gmail PERSON to journalist and realize that there accounts may be under a pack by by an authority in government. I mean that's what you know motivates us to make sure be privacy be security beat trust we are doing the right thing Important role to play here I think privacy regulation is important in areas like AI regulation will be important and so I think you know those will be part of the answers as well Hey facebook fall out that Instagram NORP can be toxic to teens for example Raise PERSON more or new concerns for you about the impact of technology, tech addiction, algorithms, YouTube ORG event, on our children, and their development and their mental health. I mean, your parent, and you also have a lot of power over how this plays out. You know, I mean, like you, you know, bringing kids up in this modern digital world or something, I think all parents are anxious about, right? So, I think, you know, it's Spotify GPE , a few years ago DATE when in YouTube ORG , you know, we we were exposed to a set of concerns. You know, we invested, it became our number one CARDINAL priority to work hard at it. The reason YouTube ORG invested so much in developing YouTube ORG kids as a safe destination for young children so on. Technology is gonna play a big role in helping give children the next wave of opportunities as well. So, the answer is to develop it responsibly. We have changed our balance in these areas and saying, we think about content responsibility first ORDINAL . I'm
Answer is to develop it responsibly. We have changed our balance in these areas and saying we think about content responsibility first ORDINAL . And then the pace of development her new features in in areas like YouTube ORG and so that's how we You for a while. Facebook and Microsoft ORG are all in on the Metaverse. What do you think about the metaverse what's google ORG 's metaphors strategy? It's always been obvious to me that computing over time will adapt to people and people adapting to computers. You know, you won't always interact with computer in a black rectangle in front of you. So just like you speak to people you see and interact computers will become more immersive they'll be there when you need it to be so Been excited about the future of Immersive ORG computing ambient computing AR and we are in Yo Meadow PERSON versus I think it means different things to different people. The way I think about it is evolving computing. In a immersive way with augmented reality. As part of that there will be many experiences. Some of which will be immersive Interactive virtual worlds you know We're just a matter of concept and you know, but I think this doesn't belong to any company, right? I mean, this is the evolution of And you know, the web, the internet, all of it will continue to evolve. Google was famous for its campuses where you could go and never leave. You had everything you ever wanted. Now, you've said they can be flexible. They can work from home. They can work at the office. They can be They can work remotely permanently perhaps Are you committed to really letting them do this forever? If so how does that change the future of work and society? Look where we we really embraced the fact that the future is going to be flexible. A google we've always tried to give you know a agency to our employees. But we do realize the importance of bringing people together Creatively community and collaboration that comes with it So the balance we are striking is is the notion of three two CARDINAL . And but we are giving the strength of our company is we are more locations than most of the companies. So, we're giving people choice to move anywhere in the world. 4 weeks DATE taken work from anywhere. We were not accommodate 20% PERCENT of our workforce to be remote over time. So we're gonna embrace that flexibility Forever GPE . Forever, yeah, and you know How many to do it? All it forces us to design better products Since people use Google Workspace to run their companies having gives us a chance to innovate and bring all that out. You know I think that is so much value in giving people more flexibility between their personal and professional lives and I think it will lead to people being happier and I think companies can be successful in that model and so we are trying to get the best of both worlds but embrace the flexibility and and And and see where where we go. How confident are you that when you look back you'll be able to say google did enough to help save We are putting so much energy and resource into it.
You grew up in India GPE , you lived through droughts, water was scarce. How has that experience shaped your feelings about the urgency of stopping climate change? You know, I grew up in Chennai GPE , India GPE and a big part of my childhood was You know, really pretty severe water scarcity. You know, we would get water trapped in. For the streets and stand in lines and carry a few buckets of water home. There was no running water for many years DATE . Ehm you know but fast forward a few years ago DATE you know Chennai had one in 100 year DATE flood you know which was Very extremely well Kinda GPE drove home. Dad PERSON combined with a few years ago DATE waking up to the orange skies here in the area. Seeing the look of concern on my children's faces and having to explain it you know all kind of drove home in a deeply personal way So I think it's the most defining issue we all face and And you know definitely something Motivated on working towards I remember waking up to those orange skies too and having to have that same conversation with my kids do you think the commitments at Cop 26 CARDINAL went far enough? You know, encouraged by many things. You know, we have to tip our hat to the people who are working super hard The issues and the trade offs Genuinely difficult, you know, you have to Keep the economy scrolling. You know, really matters and but at the same time, it's a pretty severe urgent issue. Some may increase by the progress. I think it builds on the Paris GPE agreement so I can see the forward progress. There is the deep anxiety that he told me not be enough But you know we have to be optimistic and keep pushing Google ORG has set some aggressive targets to run entirely on clean energy to be the first ORDINAL tech giant to do so 24 hours TIME a day How confident are you that when you look back on this time let's say a decade from now DATE you'll be able to say google did enough to help save the We are putting so much energy and resource into it. Always been kind of a founding value for us. We've been carbon neutral since 2007 DATE . Have you been matching our energy conception with renewable energy over the past few years DATE ? So this, you know, we are not pushing. It's a moonshot to be 24/7/ carbon free. That means every search you do, every email you send, that we can do it carbon free. We were at 61% PERCENT in 2019 DATE . The number is now 67% PERCENT We have set our goals to be 100% PERCENT by 2030 DATE And to do it globally that means we have to solve new things which we haven't done before. When done solar alone won't be enough. We just started geothermal in Nevada GPE . We will be investing in newer technology including carbon capture etcetera over time. So that's what excites me. Technology company at heart. So, There are many answers to this problem. Some of it is that we are going to have to innovate our way out of it. And you know we wanna push as hard as possible in doing that. Our Bloomberg New Economy Forum is happening this year DATE in Singapore GPE and the Asia Pacific region LOC is one of Fastest ORG growing internet economies on the planet. Where do you see the most room, the most opportunity for google to grow there? You know it's such AA Time frame you know I'm glad you're focused on the region it's the most vibrant region we see it's our 20th year DATE since we opened our office in Tokyo GPE it was the first ORDINAL office The Bay Area LOC You have two and a half DATE one 1 billion CARDINAL people on the internet. Any areas in which they are they're leap frogging trans which are here and embracing the future digital payments is a great example. So many of our products originated from APA ORG .
Leave frogging transwitch are here and embracing the future digital payments is a great example. So many of our products originated from Apac Google Maps Google ORG page A lot of the our journey to bring computing to more people is is playing out in Asia LOC as well. I am excited about also the work we are doing through cloud because the There are rapidly transforming themselves digitally. So, a chance to provide that is something. Very exciting for us. Super dynamic region. I feel like we are learning as Google being in the region and so I think it'll transform the first 10 years DATE I would have said we took products here and brought a tape pack Last few years DATE we are beginning to build things there and some of our future global products will be a pack first ORDINAL . And rest of the world later. Can't talk about eight CARDINAL pack without talking about China GPE and you're facing stiff competition from Chinese NORP tech giants there and beyond what should US GPE policy makers know about competing with China GPE You know there's a Lot of conversations about US GPE and China GPE . The competition is fierce. When you look at areas like AI GPE and quantum ORG computing where we are investing a lot. You know the Chinese NORP companies are neck to neck What I I think about you know I was encouraged by the news coming out of Glasgow PERSON about the China GPE agreement on planet. To me while we talk about all the all the areas where we are competing Some of the biggest areas which are a common challenges for all of humanity. The pandemic was one CARDINAL AI GPE and AI GPE safety over time will be shared one CARDINAL obviously sustainably is So I think these are all areas in which the countries can come together and so I think that's the way by which we think about You know when we compete on the internet and there may be different versions of how the internet plays out so I see opportunities both sides. What are the chances that Google search will ever come back to China GPE ? Or that Google cloud? Would ever come to China GPE ? Yeah, today we don't provide most of our signed in services in China GPE and I don't see that changing. But you know, there are Ways as I said AI or sustainability I didn't know the opportunities for us to work together. We will support multinational companies which are presents everywhere and so maybe there are opportunities Work that way as well. Is advancing at an astonishing rate and it is hard to understand sometimes what this really means in concrete terms how will our lives look different? Let's say 10 years from now DATE as a result of You know, done correctly, you know In many ways it's going to be helpful to you Take it for granted Today DATE for example in India GPE . Or one third CARDINAL of the queries on many phones come through voice. People take for granted you can do it. So over time you'll expect to speak and be able to understand any language on in the world. And you know, those are all ways. It's gonna make it better. You may go to a doctor's office. Ehm go through a scan and the system may be prioritizing for the radiologist. So that they don't miss some important things. Maybe giving them a second ORDINAL opinion. You know so these are all ways in which you do seamlessly start playing a role and I think we'll We'll see if it's a path. Correctly and there are concerns There are fears that AI ORG will replic The worst of society even under googles on roof from your own researchers. Scares you most about AI GPE . What keeps you up at night TIME ? Founding we are working on as humanity And anytime you're developing technology, there is a dual site to it. Being a journey of humanities, harnessing The benefits while minimizing the downsides The good thing with AI ORG is both going to take time. I think I've seen more focus on the downsides early on than most of the technology we've developed. So, in some ways, I'm encouraged by how much concern there is. And you're right even within Google You know, you know, people think about it deeply. We publish a lot of research that are I think it's more important that there are outside academic institution, governments, nonprofits, looking at this issue as well. So, I think it's It it'll be
There are I think it's more important that there are outside academic institution, governments, nonprofits, looking at this issue as well. So, I think it's It it'll it'll be an issue which you'll have a lot of attention which gives me lot of comfort as well. You said you'd pick up some new hobbies in the pandemic. What did you start? Yeah, cooking pizza, just letting you cook which I was never good at. I've got a little bit better. You have presided over Google through massive social movements that reverberated in and outside the company. What have you learned as CEO since the walkout? For me, you know, It was a moment I think it changed the company for the better you know we've always been committed it gave us an insight on what more we could do we undertook deep commitments The biggest you know overall and diversity and inclusion I think If your commented and you actually put in the effort behind it. You can make a difference. Now you've stated clear goals. We're on track to meet this meet those goals. It forced us to think about new answers. So, for example You know tech companies used to talk about the pipeline problem. But you we are now going to places where the talent is we're working much harder So, going to Atlanta GPE , going to DC GPE , going to Chicago GPE , going to New York GPE . That's improving our diversity and representation at all levels. The war for talent is even more competitive now in this new world Elon Musk PERSON has said big tech is a place where talent goes to die. How do you respond to that? Okay I look at the fact that you know we are looking to hire 30 1000 CARDINAL people next year DATE I look at the impact we have on many people coming and working In the latest cutting edge things and many people come in, people leave Google ORG , we are proud of people who have left google that are, I think that are 2000 CARDINAL companies that have been started by Umi College Supers ORG . I'm equally proud of that, right? I think we are one CARDINAL part of a big big system You know I I think I think I'm proud of the role we play in bringing in people and the impact they have over time and outside world. Alright, that's most of the heavy stuff out of the way. We're gonna do some rapid fire just to get to know you a little bit better. You said you'd pick up some new hobbies in the Pandemic. What did you start Hi you know Pizza. We are cooking pizza. Just letting the cook which I was never good at. I've got an little bit better. Cricket or soccer slash football Wow stop bored please don't make it use Square game or Ted Lasso PERSON .
Soccer slash football. Wow, stuff. Please don't make it too Square game or Ted Lasso PERSON ? I watched both Much more calm and so I'd rather take Teblaso over school games any day. I know you're a voricious reader What's the last good book that you read? I've been on a podcast bench so a lot more podcasts than books nowadays. Videos ORG you watch on YouTube ORG with your kids Lot of music videos, music videos, this whole notion were creators are watching other things and commenting on it. It's a really into and I've kind of gotten used to it now. So, you know, watching another games, it's about some phenomenon. Screen time policy that's worked for you as a parent. You know I've kind of given agency to my kids. The only thing I tell them is that I can look at their digital well being. Once in a while with them. And so how do you do that? I asked him to show it to me and they show it on their phone. So, You know, so that that's pretty much the only thing. So, beyond that you know, it's agency and and you know, talking to them about it and making sure we are spending time doing other things. And make sure they develop That's right. Metaverse or real world Done correctly. You know, you should you should feel it feel the need to make a choice. You know, you always want to be present in the real world. And when you feel the need to do something, You wanna do that but you know I do think presents and The realness of the real world will end up mapping for humans Long time. Do you own any crypto? I wish I I did I doubled in it but you know in and out. In and out okay. How many times a week do you talk to them You know I talked to them regularly You know, it it kind of absent flows. You know, I'm so, there are times we get excited about something and we spend a lot of time talking it through but it depends on You know, what would I need? A piece of advice you wish you had in your 20s? Piece of advice you wish you had in your 40s DATE . Our 20s would be you know being patient you know I think when you know young you're very impatient which is a great thing. But sometimes you do amazing things by slowing down and being really focused and doing it over a period of time. And so I would advice the you know the younger version of me to be more patient. Maybe at 40 I would say you know when I look at climbing. You know I want $one for be impatient. So you know I feel like when there's an urgency to at something and in the world needs to be impatient. So that's not why I would give to a older version of me. Personally wrestle with the decisions that you have to make. And how much longer do you see yourself being the CEO of alphabet not just alphabet but also Google Yeah Look on the first ORDINAL one there are moments we all have to make tough decisions and you know and some decisions may on me and But I it's a privilege to do it. I have very good people helping me think things through. So, adding a combination makes it all you know, fine. On a second ORDINAL thing I I'm Hey I'm so energized by the things we need to do you know I I didn't have much access to computing growing up it changed my life a lot the one CARDINAL laptop per child goal really motivated me to come into technology and and when I look at last week DATE as launching a affordable smartphone in India GPE The chance to bring the next one 1 billion DATE users in Asia LOC and in Africa LOC online. That gives me a lot of energy. We'll be watching from afar. Thank you so much for joining us. Thank you. Wish to be here. However you get your new Blueberg PERSON radio. Hey Facebook
Jeff Bezos PERSON shocked the world when he stepped down his EO ORG of amazon let's shocking what's his choice for successor Multi PERSON one 1 billion dollars MONEY cloud business Amazon ORG web services a moonshot that help transform Amazon ORG into not just e-commerce but enterprise juggernaut Jassie then needed to find his own successor tapping a former colleague who helped grow AWS in its earlyest days DATE but had since left to run Seattle GPE software giant tap low His job to continue the reinvention of AWS ORG and in turn Amazon ORG . Joining me on this edition of Bloomberg Studio 100 ORG . New AWS CEO Adam Solipski PERSON You work for AWS for 11 years DATE and then went on to become CEO of Tablo ORG software in 2016 DATE then you get a call from Amazon ORG to come back and run AWS ORG as CEO Well I was having a one CARDINAL on one at at my prior company and my Apple ORG news alerts went off like everybody else has did and to Jeff Bezos PERSON has taken on a new role and Andy Jassie's PERSON taking The the CEO role of of Amazon ORG And of course Sandy PERSON and I worked shoulder to shoulder about 20 feet QUANTITY apart for 11 years DATE so of course I reached out and congratulated him and we started talking and you know the conversation turned into some of the And next thing I know little while later here I am back at Amazon ORG absolutely delighted and honored to be the CEO of AWS and helping to shepherd this this amazing business for our customers. In that process did you talk to Jeff PERSON as well? The idea of course was you know the AWS ORG business best and of course it's taken on the CEO role but yeah there was you know contact as you might expect with small handful of other people. So what did Andy PERSON tell you he wanted in the next chapter for AWS ORG ? Andy PERSON reminded me not that I need a reminder but that it has really still day one For AWS and for our customers it is still so early in this business and we shouldn't think that just because the business has grown rapidly or just because we're currently the leader in the in the cloud That it's anything close to mature. And so he really reminded me that we have to stay hungry, innovate as quickly as we ever have done in the past. You're into the job. Mm hmm. What changed while you were gone? That surprised you Why I think that so many more customers have have really adopted the clad and really decided that they're they're going all in. So, I mean it was a pretty decent size business when I left but it's really grown and the the customer base is really expanded and so now we have a very Relationships at the CEO level, the CIO ORG level, across every country, Industry, every use case, and we're regularly interacting with The most senior people at their client organizations. So, you were working at Real Networks? Yes. In the early 2000 DATE 's and I understand you were offered a job at AWS without even really knowing what it was. I guess AWS was in stealth mode. Well, it was very secret. So, it was it was it The company didn't wanna talk too much about it but of course, you know, we had to talk a certain amount about it. So, the call I got when something like we have this initiative to turn the guts of amazon inside out and expose it to other people. And it sounded intrigue you know that I confess I didn't fully understand what that was all about so I came in and started talking to Andy PERSON and few of the other senior leaders and eventually to Jeff PERSON and I I would have to say that you even by the time I took the job I I thought I'm I'm mostly understand what they're talking about and it sounds like a good idea and and I'm in but I also was like well you know we'll just have to see how it goes and and and you know Amazon ORG 's a big big place and so I think we've got a
But I also was like, well, you know, we'll just have to see how it goes and and and you know, Amazon ORG 's a big big place and so I think we got a lot of lot of intent to succeed here and that's the thing that impressed me was Amazon ORG really had the the desire and the intent and the belief that this could be a really good business. AWS comes Out of stealth mode and is the first ORDINAL to market with a cloud infrastructure service in 2006 DATE . How important was that first ORDINAL start? And and and do you think AWS ORG still has an advantage today DATE ? Because I think the the the time to market advantage that we had Probably, honestly, 5 to 7 years DATE . Start before other companies really started to take this seriously was an enormous frankly it was just one of the biggest things that happened to us in the early years DATE because at the beginning a lot of people didn't get it I would get asked a lot at 2006 DATE so what is this have to do with selling books And well, I didn't have to slide with kind of a pile of books on it and a question mark next to it and and the answer was it has nothing to do with selling books but the technology which enables us to sell books Being global being at a massive scale being secure being low cost being highly performed. All that technology has everything to do with offering these types of services externally. No AWS isn't a scrappy startup anymore and you do have big rivals even though AW Still the leader Microsoft ORG in Google ORG art. Big rivals. How do you make sure that being big doesn't slow you down? Oh, it's a great question because we we are currently the leader and yeah, I mean, depending on which being a third ORDINAL party, You're lucky we're probably a little bit more than twice as big as as as number two CARDINAL It's really important to continue to act as if you know we're in search and to be insurgence and not to start to act like incumbents and I like to talk about actually managing the business. We want our senior leaders to be managing product and managing customers. And I think as you get bigger and you put more and Layers into your company it's it's all too frequent the extreme managing You start managing ratios and percentages and growth and I think it's it's a real disease if you if you stray away from really focusing at a deep way on the product you're building and in a deep way on what your customers are telling you Are we trying to organize both with our structure as well as just with with our culture and what we choose to focus on. I'm really making sure that everybody is thinking about one or both of those two CARDINAL things. Product and customers. And if you keep even the most senior leaders engaged that level then all send you you maintain the urgency and you keep acting like an insurgent. We gotta feel that urge Every day DATE . So, keep acting like an insurgent. That's the motto. Absolutely. And and build a culture that allows you to. It's one CARDINAL thing to say it but it's easy to say it but it's much harder to put in place enabling mechanisms that enable you to do so. We focus a lot of effort on those mechanisms. Now, Think the cloud keeps getting bigger and that AWS ORG and Microsoft ORG and Google ORG just get bigger pieces of an ever expanding pie or at some point does it become a oh some game and that fight for market share becomes more brutal and more bloody. This is very large market segment and if you look at global IT spend it's it's in the trillions of dollars MONEY I've seen estimates like three 1 trillion dollars MONEY it doesn't really matter how many trillions it is it's very very large and we've always believe that this was too good a market segment opportunity for the really to only be one winner and sure enough if you've seen rob Competition emerge and and we all compete vigorously but it is the second ORDINAL is just growing so rapidly that I think really for us we believe that you know the winning business strategy for a long time to come and I would maintain forever is to folks not on the competitors but to focus maniaically on customers and wake up everyday Understanding ORG exactly what it is that they need us to build next and then Backwards from there. Back internally to how can we build those things? If we, if we do the best job at building the most quickly, the things that are most important for our customers, then, I'm really not worried about what the competitors would do. You worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you.
Worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you. You're gonna get me in trouble, aren't you? You worked 10 feet QUANTITY away from Andy Jassie PERSON in the early days DATE tell us something about the Amazon ORG CEO that no one knows but you. You're gonna get me in trouble, aren't you? Where has Andy PERSON coming from New York GPE has this fascination I don't understand with that with New York GPE sports team so I've had to endure that for that for a lot of years New Yorkers NORP yeah so what are you gonna do oh dawg he's you know he's he's I think come come to adopt you know some of the Seattle GPE teams particularly the new hockey team the Can hear. As he should exactly. So how do you expect Andy PERSON will be different from Jeff PERSON or how has Andy PERSON already been different from Jeff PERSON What I think you know we're all different as leaders. I think it's all important that we it's it's important that we all bring our own stamp to it and and operate within ourselves. I don't think I would be very good Andy PERSON . I don't wanna presume but I would assume that Andy PERSON wouldn't be a great chef cuz you know Jeff PERSON , Jeff PERSON , Andy PERSON , Sandy, And I miss so I think that Andy PERSON was certainly bringing a great depth of of experience for me of US GPE which is you know one important part of the business and will having operated that business for so long and I expect that it'll also give him an opportunity though he was involved in other parts of Amazon ORG certainly For for a number of years DATE we'll be able to bring a fresh perspective to the whole company just as I hope to bring to AWS and I think that fresh perspective is is often helpful I think just the mirror act of change is is useful for for the business for customers from employees and just to shake things up a little bit so I I think just Fresh perspective. Will you be different from Andy PERSON Well I think that the the world around us is changing so so much that we're we're gonna have to be different. It doesn't matter what we did yesterday DATE and right after I joined we actually added two CARDINAL new leadership principles which is very exciting. One's around striving to be earth's best employer And the second ORDINAL around focusing on the fact that that success and scale bring broad responsibility and those are things about which I personally am very passionate and so I really personally look forward to digging in and helping the company to figure out what are those things that we have to figure out where can we innovate to to be earth's Employer and then also to figure out externally what can we do to to really be great citizens of our local communities to be great citizens of our national communities and to be a great citizens of
And then also to figure out externally what can we do to to really be great citizens of our local communities to be great citizens of our national communities and to be great citizens of of the global community and I'm I'm I care a lot about Things as a lot of other people do here but I plan to put a good amount of energy and time and focus and hopefully help Amazon ORG innovate all of those areas. How closely do you work with Andy PERSON day to day? Does he, you know, regularly weigh in on AWS decisions or not? He's he he's got AA pretty broad scope of things to worry about now so he he's got a pretty a pretty intense day job I believe so he's really focused across the company as you would expect him to be but Being said obviously AWS ORG remains an important part of Amazon ORG and so we touch base regularly but in person or you know via email just on the most important things going on in the business. Does Jeff PERSON ever weigh in on AWS ORG decisions? Yes, I mean really from the beginning. Jeff PERSON was involved at the very very beginning. It's some of the most fundamental decisions What does the detail page look like obviously over time The business crew and but at this Jeff PERSON was always you know available when we needed him and I certainly anticipate that it'll be the same going forward. So is he still available now? Priorities are. Sure. Well, I'll let let Jeff speak to Zone priorities but but certainly Jeff PERSON has been available when for example we've Our our annual planning cycle as many companies have and it's been great to have have Jeff PERSON did you win on really in where we're heading for the next year DATE and beyond and to just make sure it's easy to get focused on the details of the business and it's it's great to have a multiple Can help you pick your eyes up a little bit. No, you joined AWS in the middle of a pandemic. You came back to AWS in the middle of a pandemic. That's hopefully moving into the rear view mirror. Maderna GPE is one CARDINAL of AWS ORG 's biggest customers. If it weren't for the cloud, if it weren't for AWS ORG , would we have had a vaccine as quickly as we did? I've gotta tell you mys but it's been an absolute privilege to for us to work with Maderna GPE because what they're doing obviously is literally lifesaving and they've been so innovative and so creative. So, Maderna GPE took a drug development process to get to the To a vaccine candidate. That process would typically have taken of 20 months DATE and doing that on AWS ORG and conjunction with all the the innovation on their side. Reduce that 20 months to 42 days DATE . 42 days DATE to get the the the vaccine Canada GPE the mRNA vaccine candidate for for COVID-19. Those Hey On on running multiple parts of modern on AWS ORG . So, if you look at the drug design part, they had their their drug design studio, running on AWS ORG , all the way to manufacturing, with of the new digitized manufacturing that they call their their digital manufacturing platform. So, it's really end to end and the ability to use Of amounts of resources and to pic the exact you know type of of service and capability for for for each part of the job and and and truly bring the full set of resources to bear. In addition to not having to focus on the idea and the infrastructure and the technology and rather letting you know Moderna PERSON focus on on the all important job of drug discover So, working in partnership it was just magnificent to to see what that accomplished. Since you joined AWS ORG , the number of long time AWFS leaders have moved on. To Microsoft ORG , to stripe, to tablet, does that concern you? Well, actually retention that has has been very good. If you let you mention The senior leaders if if you look at the the VP plus ranks the VP and above ranks at Amazon ORG Average 10 years DATE is over a decade DATE . Over 10 years DATE . So that's actually very very strong retention. So of course yeah you're always going to have some love of people coming and people going and at the end of the day that's actually healthy for the business. You want new perspectives to come in. Of course in the right proportion. Amazon ORG has opened an investigation after Employees supported a petition Claiming a culture of discrimination, harassment, bullying, and bias. What's the Of this. Are incredibly focused and I personally believe it's incredibly important to really have a
Meant bullying and bias what's the status of this What we are incredibly focused and I personally believe it's incredibly important to really have AAAA very diverse you know inclusive and equivalent And we're going to Sure that whatever it takes that we've got that. So, we believe that we're really doing a lot of things to to deliver on that A lot of innovative efforts around bringing a diverse workforce which we have to have both because we're gonna serve our customers best. They're diverse. We have to match that diversity and also just believe it's our responsibility and it's the right thing to do. Yeah, anytime there is any possibility that things are not something is knock on the way we To we're gonna investigate it thoroughly that's what we're in the middle of doing in this case and and we'll make sure that we're operating in a way that's consistent with our values and and that's that's always the only goal. If you could rewind to the early 2000 DATE 's the earliest days of of AWS ORG is there anything you would have done differently to Building inclusive culture to start with a more inclusive culture To make sure that it didn't become a you know Boys club. Why I I I don't think that's what we have. I think that we do have a really Exciting innovation led and inclusive culture And that being said, these are hard problems. You know, we, I think we've done lot but we we are nowhere close to where we need to be. We're gonna be restless and dissatisfied with our our progress on DE ORG and I just, as we are with every other part of our part of our business. Mark Zuckerberg PERSON is making a big bet on the Metaverse. How big do you think it's gonna be? Such an interesting sentence. The Metaverse PERSON is real. AWS ORG has the biggest trove of sensitive corporate data. In the world i'm curious how you think about the balance between data and privacy and you know freedom and civil liberties in the modern era. I mean there are governments. There are nation states around the world that want that information. Hackers and criminals want that information. Very clear to start with that Is security. We often say security is job oh. It was on the the the first page of our of our operating plan pretty much every year DATE . Every year DATE that I can remember. But what about when governments request that information? So. Subpoena that information. Sure. Well, Very clear that our customers data is their data. So, the data belongs to our customers. So, not everybody operates that way. We we are not going to look at customers data. We are not going to compete against our customers using their data. Is there data? Furthermore we have all sorts of architectural best practices that our customers should be and and are using for any sense of
Furthermore we have all sorts of architectural best practices that our customers should be and and are using for any sensitive data. And and so a lot of that really relies around encryption And so we've got a lot of different encryption capabilities so that any sensitive data and which could leak for any reason a beer to a government beer to a hacker beer to anyone else any form of of security breach that it's encrypted in useless to anybody else. Give them the the Encryption solutions that we that we provide. It's actually, you know, very doable and powerful for our customers to to safeguard their data that way. Mark Zuckerberg PERSON . Is AWS gonna have a role in the Metaverse PRODUCT ? I think idea but yes already has a big role on the Metaverse. So, I think the cloud enables the Metaver PERSON . So, if you, if you think about all of the computer capacity, all of the storage, all of the machine learning, which is in required to create, you know, compelling, a delightful end user experiences in Reverse. A lot of that is ready today DATE running on AWS ORG . So, if you take epic games for example. So, epic runs Fortnite, you know, massively popular game, 350 1 million QUANTITY users worldwide and epic runs almost everything on AWS from back end. Servers to the Athletics ORG and and everything in between so I think that's a great example of the of the netters at work and all that's happening today DATE on AWS ORG and we anticipate that's only gonna grow really rapidly in the future. How big do you think it's gonna be? It's such an interesting sentence. The Metaverse PERSON is real. It's virtual at the same time. I think that if if we continue to do do what we've always done which is to provide a technology platform that allows organizations to transform then these gaming and entertainment and social media and other other companies will be able to do what they do best which is to focus on innovating up a half CARDINAL of their end users and I That the Metaverse and many other areas will will will be rich with So this next conversation we'll have will happen in the spheres in the Metaverse that that Next ORG meet. Alright see you there now I know that climate change you know and stopping climate change and your data center foot A big passion of yours. How fast will Amazon ORG 's data centers get to carbon neutral Amazon ORG is already the largest purchaser of renewable energy in the world. And we're we intend to be 100% PERCENT renewable energy by the year 2025 DATE . We'd originally said 2030 DATE . We actually accelerated that by 5 years to 2025 DATE . That's part of our our broader climate pledge that Amazon ORG created and to which we've now gotten 200 CARDINAL other organizations to sign on to And the the climate pledges to be that nets are a carbon by 2040 10 years DATE ahead of the the Paris Accord ORG target. So, we we know how to do some of that, other part are gonna require invention but we really look forward to it and I think it's it's it's it's one of the most Things we can do for that for our generation. Amazon ORG counts some of the biggest oil and gas producers as it's customers. Isn't that a contradiction? Should you be kicking them off your platforms? Those customers are trying to get to sustainable business models which rely on on a new energy sources and So many of those customers are figuring out how do they get to win how do they get to solar how do they get into batteries New business models relying on renewable energy and I think rather than abandoning them and having them maybe dig in more on on fossil fuels. If we can enable them to to move faster, to be more innovative, and to be more agile and figuring out new business models, new tactical solutions, experi Failing fast and moving on to the next next idea then the whole world will get to to the renewal binergy solutions that we need. It'll be the first ORDINAL time that Andy Jessie PERSON is not giving the keynote. You will be Give us a preview what can we expect to hear? Exciting announcements. So, I I think across our service portfolio, you'll see that. We have a lot of exciting partner announcements.
Back to here. Exciting announcements. So, I I think across our service portfolio, you'll see that. We have a lot of exciting partner announcements with partner econom PERSON still remains to this day DATE . So important to what AWS ORG is doing and we have some great announcements lined up for that. And then I I think people are gonna wanna see that we're making it And easier for them to consume the cloud and to work with AWS ORG and so we're gonna continue to in addition to building more powerful basic capabilities. We're gonna continue to make it easier and easier in a variety of ways to interact with AWS ORG . Adam Salivski PERSON , CEO of AWS ORG , thank you so much for joining us. To deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials What do you want to know today Ask a question or visit search go to find answers now. Alright, so here we are one of the elephants. Since this very first YouTube ORG video was uploaded 16 years ago DATE , the world's most popular video network has exploded to more than two 1 billion QUANTITY users in the farthest corners of the planet. Now, raking in billions of dollars MONEY every year. Pop culture. And kid culture. Amplifying some of the brightest and sometimes darkest traits in all of us while YouTube ORG has elevated a generation of creators and educated and entertained generations of viewers it's fought misinformation terrorism racism and violence many clicks along the way lately YouTube ORG 's biggest battles are Misinformation ORG and keeping the platform safe for kids and teens on this edition of Bloombrook Studio ORG 100 CARDINAL . We rewind to talk about where YouTube ORG has been and fast forward to where it's going next with one of the Susan Wijitski PERSON . It's been 5 years DATE since we last talked On camera. Yes. And we have a new president. We are weathering a pandemic. The most watched video on YouTube ORG is Baby ORG shark. So a lot's changed since 2016 DATE How do you feel about YouTube 2021 versus I feel good about it. It's definitely been a while.
Since 2016 DATE How do you feel about YouTube 2021 versus I feel good about it. It's definitely been a while and in technology, things move so quickly. So, a lot of things have changed since 2016 CARDINAL Responsibility And that's been a really big focus for us. And it would weather through a pandemic and a lot of hard challenges but overall I'm feeling really good. You've been a google for 20 plus years DATE going all the way back to Larry PERSON and Sergey PERSON . In the garage, you've been the CEO of YouTube ORG for seven plus years DATE . How has Your job changed in that time. Since I joined being the CEO of YouTube ORG , I would say one of the biggest things that has changed certainly has just been maybe the recognition of the importance of digital video. So, when I first ORDINAL joined, actually a lot of people would say, oh, like, why did you join? I was running ads beforehand and that was that's been the main way Google generates revenue and so a lot of people said like why did you leave that and go to YouTube ORG but I always believed in digital video Believe that now we see that the world also believes we've seen a lot of adoption of digital video and the benefits of that can have. You've championed this diversification strategy at YouTube ORG since you started. What's working and what's not working? Well, our main way of generating revenue is from advertising. But we also have really grown our subscription revenue Many different reasons. So, that has enabled our users to have experience where they can have music, YouTube ORG music, and premium. We just announced the 50 1 million QUANTITY Example generate revenue with channel subscriptions they may sell merchandise We also have things like digital goods, so like super chat, super thanks, and so with basically diversify the number of ways that that are ecosystem is generating revenue. The original tagline for YouTube ORG was broadcaster yourself. Concept has exploded. You have ordinary people in the spotlight. When they grow up, they want to be an influencer. They want to be a YouTube ORG star or a YouTube ORG What do you see as the future of the creator economy I see a lot of possibility with the creator economy and because I see that many people have a lot of interest and they have a lot to offer Beforehand NORP they went to been able to have With the world and so there's so many people depending upon what their talent or their interest is whether it's a sport or cooking or gaming or hairstyles that people have come out and really been able to share that and create a lot of jobs. So, we actually see like our we actually saw 35% PERCENT increase in the number of creators that are generating six CARDINAL figure income out of YouTube ORG . And in the last year DATE and so that's just an example of like how the creator economy is continuing to grow. Well, and for years DATE , YouTube ORG was the only company that actually paid Creators but now a lot of companies are paying creators in Facebook and Instagram NORP snap TikTok You see that Competition playing out who wins Well, it is a competitive landscape and in general, I'm competition's good. It makes everyone work harder and that's good. I mean we look at creators and we say they're gonna come to us if we do the best job and creators come to us looking basically for fame and fortune like how can I I have a skill or I have a talent something I wanna share with the world like and YouTube ORG can help that be no it can help them provide that Really hard to make sure that we deliver that for our creators. A year ago DATE during the Black Lives Matter EVENT protest, YouTube ORG made big commitments to black creators in particular. What's been the progress there and The potential for YouTube ORG to be used as a tool for social justice. Also we'd made an announcement that we were gonna do 100 1 million MONEY
And Youtube ORG the potential for YouTube ORG to be used as a tool for social justice Also we've made an announcement that we are gonna do 100 1 million dollars MONEY black voices fund and so we're continuing to develop content there but one of the others and and I I think there'll be a there's been a lot of great content that's come out and we'll certainly see more. But you know you because YouTube ORG doesn't have any gatekeepers like you can just post and Become a creator we have seen a lot of people of different backgrounds and underrepresented backgrounds become creators and have audiences we never really measured it beforehand cuz we didn't have a way and so one of the things that we've done is within with enabled creators to now tell us what backgrounds they they So we can have a better understanding of how they're doing on our pop farm. Let's talk about YouTube ORG shorts. It seems to be a top priority. Yeah. We all know that TikTok ORG is on the rise. How important are you to shorts to the platform to the company? So YouTube ORG for it's very important. We see that creators and users wanna watch Uploaded to YouTube me at the zoo with an 18 second TIME video so is it a short form video Two CARDINAL more is just enabling those to be found and then a lot of the creation tools and so bringing a lot more mobile creation is really important for us going forward. Did you notice that viewing time was being lost to ticktock? Did you see that trend? And do you see TikTok ORG as a sort of existential threat? Many competitors in this space. Where's our opportunity? We're always looking around, seeing what our competitors are doing, and if they're doing something that we think would be good for our users and our creators, we're also gonna look at how we can improve our our own economy, create our economy, and what's good for our users. I think a lot of people, you know, we talk about vaccine hesitancy and they blame social media. They say YouTube ORG 's not doing enough. One CARDINAL of the big things for us is to continue to work with public health experts to get their messages across. Mama is tired. You have to feed your creativity. Don't this tree house. At this point YouTube ORG has become a hub for discovery for Curiosities, right? That comes with a lot of inspiration but also with misinform When it comes to vaccines, vaccine hesitancy, videos that cause a public health risk Where do you wanna see YouTube ORG do better? We've taken responsibility
When it comes to vaccines vaccine hesitancy videos that cause a public health risk Where do you wanna see YouTube ORG do better? We've taken responsibility So first ORDINAL of all we wanna make sure that if there's information that violates our policies we came up with 10 CARDINAL different palsies around COVID then if that's a violation of policies then that's something that we'll remove. We removed over a one 1 million QUANTITY videos associated with COVID but we also wanna make sure that we're rais Information that we think would be that will come from trusted and authoritative sources and we've really been able to do that. I think a lot of people, you know, we talk about vaccine hesitancy and they blame social media. They say YouTube ORG 's not doing enough. You know, how do you respond to that? Yeah, I mean, I think, well, first ORDINAL of all, we're always learning. I just, just to be fair, like we're always thinking How can we do better? We're looking at the feedback and Public health experts. Across the board and you know, I think one of the big things for us is to continue to work with public health experts, to understand, you know, what are the ways that we can partner with them to get their messages across. And I really believe that that is something that's really changed is the the is The evolution of bringing Musicians ORG , experts talking about public health. We never would have seen that before the pandemic. How much do you internalize the criticism of of YouTube ORG 's content? Do you take it personally and and and how does that influence the decisions that you make us to eat? I wanna be doing the right thing and I I care about that. I The next generation and by by everyone today and so I really have put a lot of time and effort to make sure that we are acting responsibly and there's That we think could lead to some kind of real world harm. And so I'll make sure I think whenever you're in a position like that there's gonna be a lot of criticism Our goal is just to continue to you know talk to experts and evolve. And how do you make decisions in those tough moments? Where it's a tough call like how much of it is making a decision or leading by consensus and how much does it come down to you? The goal is that when we have tough decisions they're not we're not they are like improvising in some way. Is it a violation or not a violation and if it seems like there's some set of issues with the that we have in the platform we're gonna go back to experts and then reevaluate is it should we be making changes to the our policies YouTube ORG helped keep a Not children, connected, educated, entertained, distracted, through the pandemic. What have you learned from that experience and what do you see as the potential future of YouTube ORG as a tool for learning? As a tool in schools When I meet people and they find out them to see of YouTube ORG almost always they tell me about something they learned on YouTube ORG or someone that they're something they're family member alert so I see that as being a very significant part of YouTube ORG We had people who had to also just learn a lot of skills that they hadn't learn beforehand but probably the biggest thing that we also learned was just and that I release I was in need for us to continue to work with educational institutions And the need for us to be able to integrate with some of the learning tools that the kids are all using because they are using YouTube ORG and there's a lot more that we can do to really help educators have YouTube ORG be a key part of the Curriculum ORG . My kids are on YouTube ORG a lot and sometimes more than I want them to be and sometimes it's super productive and they're learning something cool and sometimes it's not productive at all. Innovating to make the time that kids spend on YouTube Valuable PRODUCT and of course safe. To me as a parent to make sure that we're giving parents options about how what they want their kids to see and that's one of the reasons that pretty much as soon as I got to YouTube ORG , we started working on YouTube ORG kids. Which is a separate app, which is important for kids, in terms of how we can control the quality, and we can give parents a lot more control.
Youtube, we started working on YouTube ORG kids. Which is a separate app, which is important for kids, in terms of how we can control the quality, and we can give parents a lot more control What kind of content is appropriate for them and their family and you know there are many other things like we actually just came out with a supervised experience for twins because twins was one of the age groups that was actually hardest they they usually don't wanna be on the kids app but they're not 13 CARDINAL to be on the Came out with. The Wall St Journal ORG has been doing some in-depth reporting on Facebook. You know, the report is that Facebook knew that Instagram ORG was toxic for teen girls and didn't do anything Does YouTube ORG look at the impact it has on on team users the influence that my Avon PERSON on someone's body image or self esteem personal I think it's a it's a very important topic and We we do have a panel of experts that we work with to be able to help us understand what are the different ways that our product could be used or whether how do we face some of these challenging issues to make sure that we're getting the best advice We certainly do see for a lot of really tough issues that YouTube ORG can be a really valuable resource. So, body positivity, mental health, we see a lot of creators actually talk about mental health. And that that for a lot of kids it's really it like destigmatizes and enables people to talk about what's happening and what's going on with them. The potential long term impacts of YouTube ORG on teams and on children whether it is toxic or whether it's addictive. Is that something that you wonder about? Is that something Struggle with not just as a CEO but as a mom. We certainly wanna make sure that we are doing what we can to be responsible with kids and in every way possible. And that's one of the reasons that we actually have worked hard to give parents as many options as possible for them to decide what is important for them and their family. Whether that's like What is the content they actually have access to? I mean, even letting parents just say, these are like the 10 CARDINAL videos. My kid can only see these 10 videos And so that is that is really important for us to give the tools back to parents for them to decide what is best for them and their family. Are you concerned about blooming regulation? That is well intended but actually then has a really negative impact. I would like to begin by addressing the heinous attack on the United States GPE Capitol Like all Americans NORP i am outraged by the violence How much did President Trump PERSON test you to and how much did it test you as a leader? Election integrity is
Mayhem how much did President Trump PERSON test you to and how much did it test you as a leader? Election integrity is something that we see incredibly is incredibly important. And with leaned in to in every way we possibly can. We treat all Figures and all public leaders the same as we treat any individual and so meaning that everybody is held to the same standards and so we definitely President Trump PERSON has we would hold all other presidents and all other elected officials to the same standards that we hold our creators and anyone else on YouTube ORG . What was that to fuck up for you as the city of the company? I mean that's kind of that's like a big responsibility. It is difficult but I it is very important and we also are global so we're dealing with leaders from all over the world and they were a number of leaders that are and they're continuing to be a number of leaders that that post or that there's content that maybe a violation of our palsies but we do hold it consistent standard across everything Youtube ORG was the last platform to ban Trump and you have said Channel ORG will be reinstated when an elevated risk of violence has subsided. How and when specifically will you make that decision? We'll we'll make that decision based on a number of different factors. Whether that is like events in the news, signals were seen from the from the government. And it will certainly continue to evaluate that based on a large number of signals that we see. And will he ultimately be ransated? I mean we've stated that we will reinstate him when we believe that there is no risks to public safety or no public danger. Google just remove the voting app for Russian NORP opposition leader Alexa Navalle PERSON . The Russian NORP government seems to be stepping up requests to take down content You've talked in the past about your family history, your grandparents living behind the Iron curtain, being concerned about censorship back then And Russia GPE is a huge YouTube ORG audience. Yeah. How concerned are you about Russian NORP government overreach? Tube it's the fact that we do enable so many voices and that we do enable people to Themselves and really celebrate the freedom of speech And we certainly, yeah, that's that's a core value of ours. When we work with governments or many things that we have to take in consideration like whether it's like local laws or what's happening on the ground and so there's always gonna be multiple considerations that we're gonna have to take into consideration. Said that YouTube ORG deleted a video. One CARDINAL of his videos was that At the request of the Russian NORP government. We certainly get requests from governments. And and we look in consider what's why are we getting the request? What's actually happening on the ground? And based on a whole bunch of different factors. We make a decision. So we don't always, those are not always We will honor them. In that country. Administration seems to be targeting big tech. We've seen Mark Zuckerberg PERSON , we've seen Jack Dorsey PERSON now tested five CARDINAL before Congress ORG multiple times I've heard it said that YouTube ORG is getting a pass Do you think you should be up there testifying? Well, I think we do got a lot of scrutiny. I feel like there's a lot of scrutiny. And because YouTube ORG is part of Google ORG , Sendar PERSON has testified a number of different times and answered many different questions on YouTube ORG . So, I do believe there's a certain amount of scruti And you know, if if I were ever asked a testify, it's certainly would go and testify as well. You're one of the most senior women at Google ORG , if not the most senior woman at Google ORG . Google has faced a lot of scrutiny for how it treats women in recent years DATE . How much progress do you think Google has made in hiring and promoting women Across the company and how much progress do things still needs to be made? Effort across technology as a whole to be able to be more inclusive and I think that is really positive. I've been a big supporter of it. It's the very beginning. I mean I think at Google ORG there are many efforts and there's a lot of a lot of work that has been done and I'm sure there's a lot of
And I mean I think at Google ORG there are many efforts and there's a lot of a lot of work that has been done and I'm sure there's a lot more for us to continue to do and if you just look at the stats you can see they're not enough women. We need more women. In technology. And I think we have made a lot of progress but it's still It's hard to be it's harder to be a woman in technology. It's harder to be a minority of any kind. When we last spoke 5 years ago DATE you know I asked you about being a mom you have five CARDINAL kids and you said something that really stuck with me you said being a mom makes me a better leader I prioritize better I see something growing fast and I run towards that if something's growing closely I'm like I don't have time for that how is that management strategy play I think it's played out really well I mean priorization is everything when you look at it because we have a lot of opportunity there's a lot of moving pieces very dynamic environment so if you can prioritize and say these are like the most important things to do then you know you're gonna get there faster How long do you plan to stay at Google ORG ? So I have a lot of ways that I see that YouTube ORG can continue to grow. I have a lot of products and ideas and things that aren't yet released and things that we aren't yet doing. And I'm excited about getting those done. So I think if there comes a time where I no longer have a list Projects or I feel like Would you step up and do that? Well, it's doing a great job. Please I think he's doing I mean it's a very challenging job there's a lot of different constituents and a lot of product a lot of different issues Do you still talk much to Larry and Serge WORK_OF_ART ? Do you ever talk about work? But our business is very complex right now. And there's a lot of things that are happening and so it's hard for I mean people may have different opinions but To really To to really engage it to long conversation. What do you want your like a C to be? I am proud of the way that we've been able to enable people to have a A channel to have an audience like I just met with a number of three three CARDINAL creators and like Really was able to let them shine and create audiences in a business and employ people that otherwise never would have happened and so that's certainly one. Continuing to grow that I'd say second ORDINAL it's been really important to me to to see a lot more women in technology. That has been just a personal goal of mine. It's too Like be a role model and try to support women and I feel very fortunate to be have gotten to where I have and I know is due to like many different factors. And I wanna support the next generation of women and make see technology as like a open place where anyone can come and And then probably lastly continue to grow what we're doing with education. Susan PERSON would just give you of you too. Thank you so much for having me. Do you see that coming
Do you see that coming Taiwan GPE and China GPE . To come from we will not just cut and run with unmatched breach and resources The moment news breaks 24 hours TIME a day. This is Bloomberg Daybreak PERSON Middle East LOC on top stories this morning TIME Saudi Arabia's GPE energy minister warns extreme volatility in the oil market May 4 DATE Is done more than 20% PERCENT since June Government ORG is offering special loans as the PBOC urges banks to lend more. And Israel Central Bank ORG surprises with the biggest rate hike into decades DATE as it seeks to tame inflation. A very good morning TIME .
And Israel Central Bank ORG surprises with the biggest rate hike into decades DATE as it seeks to tame inflation. A very good morning TIME . It's just gone 8 AM TIME across the Amherst LOC . Warm welcome to the show. Dubai GPE so when it comes to building a floor under the oil market you bring out the royal big guns his royal highness prince of dollars has been so man says we're wrong there is a disconnect between the future's market and the Disconnect in terms of the dropping oil prices on the future's market on the demand worries extreme volatility a lack of liquidity is leading to a state of schizophrenia this Signals We may have a problem. We may need to cut production. We will strengthen our resolve. All markets are front and center. His royal highness gave a five% boost to the oil market. Now, to the dollar. And the Euro PERSON dollar specifically a 20 year DATE low a bruising battering and the FX ORG market is missed pricing the energy crisis called the Jordan Rochester PERSON we broke parity 95 CARDINAL . Of the Central Bank ORG narrative at the European Central Bank ORG cable one 1773 DATE not just booze but bratted at you're looking at the low since March 2020 DATE inflation is now being priced out at 18% PERCENT by city group so that is Something NORP we will talk more about. What did the pros look at? What would I know? At 136 40 DATE is where we are dying two tens CARDINAL of one% ORG on the year DATE . Dropping against the yam and the yen is supposed to be eh one of those haven but of course as we go to Jackson Hold the whole door narrative goes a lot lot stronger. Let's check On the western markets. I'd like to have a look at equities before we go. Shall we though we go quick snapshot? We're biting back. We had a summer of love wobble yesterday DATE . Started charted Morgan Stanley ORG . Morgan Stanley ORG . Do you want that going into September DATE do you want that more liquidity and safety Let's put that prospect to Juliet Sally PERSON . She will take you through the morning market wrap in Asia Jewels LOC . Hey, man. Well, I think anyone will know one really wants any risk ahead of Jackson Hall FAC . That's certainly what we're seeing here in Asia LOC . Stocksole for a fourth ORDINAL session. We're really only seeing those energy players rise on the bounce in crude. Also, a little Reopening stocks in Japan GPE and this is on that report that the Nike ORG report that they could be scrapping PCR testing but as you can see the Nike ORG is lower and dragging on the overall regional benchmark index and still weakness too in the property players in Hong Kong GPE and China GPE despite this 29 1 billion dollars MONEY injection by authorities to really try Stabilize the market. We are seeing yields rise across the board again ahead of Jackson Hall FAC . You'll also had August DATE PMI ORG for Australia GPE dropping below 50 CARDINAL for First ORDINAL time since January DATE . And we're watching a little bit more strength now coming back through the dollar against the one. The one was rising earlier after some verbal intervention in South Korea GPE to try and stop. That 13 year DATE low that we had seen against the currency versus the dollar Let's have a quick look at the one it is trading at a 2 year DATE low Bloomberg Intelligence saying that the onsure you want could be around eight% undervalued here they're saying inflation differentials despite mattering less before the pandemic have become more relevant since then but authorities also Analyze PERSON I should say also expecting some more stimulus coming through from the PBOC Manus. Jill PERSON thank you very much responding Chant PERSON there this morning Increasingly disconnected from fundamentals. Prince of dollars has been salmon till Bloomberg PERSON that harmful volatility is disturbing the basic functions of the market. Let's get more without energy reporter Steven St Stephen PERSON . Gave his last week it's a tight market in reality but the futures are not Of that construction
It's a tight market in reality but the futures are not Of that construction Absolutely, I mean, when you just look at where the market has been heading over the last few weeks DATE , the big story has been this recession. We've talked about it quite a bit. Here and in our articles, you know, the market is very focused on Saudi Arabia GPE is saying and when you Look at the amount of supply in the market. The market is still tight and everyone still realizes that it is not a very cheap to get a physical cargo on the market but because of the low liqui In the future's market and because of some speculative bats you really think that's draw down in prices in this disconnect widen and that is what Saudi Arabia GPE is worried about and that's what they wanna try to combat if they were the potentially curb output. Of course this goes back to the whole debate about if Iran GPE supply comes back on board would Opec Plus be able to accommodate that without some kind of an adjustment but it would appear that the language of progress Hey Facebook coming lighter from the state department. Talk me through what they've said about the latest response from the Iranians NORP . You know, it's not just the US State Department ORG . It's also Europe LOC has said that they've they've had some basically constructive deals comments from from Iran GPE and the government there and you have seen this kind of rationing up From the US GPE government as well as from the EU ORG saying you know the possibility of a deal if something coming together could could be something in the car it's and we are definitely Took it apart in 2018 DATE that's also part of the story of why oil prices have been falling. Where you could read Saudi Arabia's GPE comments as hey look nothing is done yet you know why is there this giant self there's no Saudi NORP crude in the market how long will it take for that I'm sorry there's no Iranian NORP crude coming into the market how long will it take for that to come back in and we'll we'll Replace any supply and opera plus how will they accommodate that there are a lot of questions or law speculation and I think may you know when you when you hear what the 30 minutes TIME or says It's a lot of trying to reassure the market that we're not in the right place and prices need to be higher. Steven PERSON thank you very much Steven Stichinski PERSON the very latest on the all markets Troubled real estate firms with 29 1 billion dollars MONEY worth of special loans bounces Beijing GPE steps up the support for the main pill of the Chinese NORP economy are chief North Asia LOC correspondent Stephen Angle PERSON is with me Stephen PERSON good to have you with me so combine with the rate cuts that you and I talked about yesterday and this is an additional move now you said to me yes you manage to not throw in the kitchen sink at it but 29 1 billion dollars MONEY is it's a fairly good soup song. Yeah, that's right. I mean, I had 29 1 billion dollars MONEY . That's a nice kitchen sink. Obviously, but they do need to do something to show up confidence in the property sector. Cuz again there's been these mortgage boycotts and the property sector and new loans have been absolutely falling in the latest set of numbers in July DATE and there's plenty of money at the banks with the broadest measure of you know Essentially M two CARDINAL being very much above expectations but there's been a lack of lending so this $ 29 MONEY . 3 billion CARDINAL special lending packages is designed Perhaps less to stimulate mortgage demand but more to get those projects that are half CARDINAL completed completed because the develop China GPE simply do not have the ways it means to raise funds because of the three CARDINAL red lines and also the various crackdowns that have come down the pike so it it's a delicate Act that the PBOC has they want to stimulate the economy they want to stimulate confidence but they don't want to ramp up the risks which they started with those three CARDINAL red lines campaign a couple of years ago DATE in fact with the state council ORG said repeat We don't want to overdraw the future.
Risks which they started with those three CARDINAL red lines campaign a couple of years ago DATE in fact with the state council ORG said repeatedly we don't want to overdraw the future so hey this is what the PBOC this is what the All around the world need to do they need to make that balancing act but you have all those other headwinds manners in the economy from COVID oh at the very top the biggest headwind and no exit strategy that we know of and of course all the other problems in the Chinese NORP economy right now. Steven PERSON absolutely in global inflation it is is the angst of everyone our chief north Asia LOC correspondent Stephen Anger PERSON which takes us to this note which literally Depart PERSON . All the news channels yesterday DATE have made it everywhere. Every news channel I flicked across was talking about the city group note. Calling about inflation in the United Kingdom GPE . Could hit 18 Next year DATE . Now the last time we were above 18% PERCENT by the way was 1976 DATE . No be saying that the UK GPE 's gonna need a bay like this time from the IMF. But that's when the United Kingdom GPE did need a bay light. The gas 18% PERCENT it is this that the price caps when they're taking off in the United Kingdom GPE next year DATE As a high school you could be going from paying 2000 DATE lb for your energy bill to 6000 lb 20% PERCENT of your disposable income and a bank of England to respond to that Need ORG to raise rates to seven% should signs of more embedded inflation. You can see Too. Again, a vicious break below a below the 120 CARDINAL level but I put on this chart Valerie Territo Queen PERSON of Charles created. You've got 2 year DATE paper, no pricing, and 231 CARDINAL basis points of hikes by May of next year DATE . So, this is a dollar strength story Continues ORG to drop that chart is in the library 667 CARDINAL . Let's get to Julie and Sally PERSON . She's got your first ORDINAL word headlines from around the world. Miss Sally PERSON . Thank you Mister Crowney PERSON . Israel GPE 's Central Bank ORG has surprised most economists by delivering its biggest rate height in two decades DATE . The benchmark was raised to two% ORG Since 2008 DATE officials have been racing to get ahead of inflation which has accelerated and made an economic upswing. The top US GPE infectious disease expert she became a household name during the pandemic we'll step down at the end of the year DATE doctor Anthony Fauci PERSON has run the national institute of allergy ORG and infectious diseases since 84 CARDINAL advising seven CARDINAL presidents on every major infectious disease outbreak since the HIV crisis including a bowler and Zika the 81 year old DATE says he's leaving to pursue the next chapter if he's Korean NORP . Former Malaysian NORP prime minister Najibrazak PERSON is back in court for a final appeal against a 12 year DATE prison sentence related to the one CARDINAL MDB scandal that you've denies any wrongdoing over the state fund that had billions of dollars MONEY siphoned off Malaysia GPE 's longest serving leader Mahati Muhammad PERSON says A 50 CARDINAL 50 CARDINAL chance that Najibul PERSON eventually receive a royal pardon that could pave the way for a comeback as prime minister. Japanese NORP lawmakers and a US GPE state governor are making overliping trips to Taiwan GPE despite a possible backlash from Beijing GPE across party group from Tokyo GPE will meet president saying when during their 2 day DATE visit Indiana GPE 's governor has also visited to discuss econom Partnerships ORG . After US GPE House Speaker Nancy Pelosi's PERSON arrival provoked Chinese NORP military drills. And Elon Mask PERSON has subpoenaed his long time friend form a Twitter PERSON CEO Jack Dorsey PERSON in his legal battle with the social media giant mask is seeking to collect documents and data to show that Twitter PRODUCT understated how much of its customer base Both sides ahead of the expedited trial in October DATE Global news 24 hours TIME a day on air and dump bloom but quick take powered by more than 2700 CARDINAL journalists and analysis more than 120 CARDINAL countries this is Bloomberg PERSON manusc Just think about it. It's still ahead. It's really markets. The risks from a cut from Opec Plus. What would that mean?
What would that mean? For the Hawkish Ratorick A Jackson Hole FAC we speak to investments chief market strategist Lupus PERSON joins me shortly. If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Common theme that brings together bipartisan support for this in Wyoming GPE . We wanna make sure that people understand especially in Wyoming GPE but as United States GPE of the whole, this trend is coming. It's not going to stop. More of a small town that's growing into without a call that cryptocurrency version of Silicone Valley FAC . Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. It has been mostly a dollar story. Europe LOC hasn't under performed as much as I think it should. I think the the FX ORG market is totally missed pricing. The situation you're at. The situation is a complete rethink of the economic model near your zone and I'm just it is struggle. It's strange for all of Euro MONEY . Sending off so slowly. I think it should be much faster. We'll be testing 97 50 CARDINAL down towards ยข95 PERSON in the next few months DATE . Big call from Jordan Rochester PERSON there Namara G 10 PERSON at that strategists the perfect storm that's engulfing the euro at the moment and the more is not alone you got Morgan Stanley ORG and the others all For a bigger drop now there's a euro dollar MONEY at the moment 99 41 CARDINAL markets anticipating a hawkish referral from the federal reserve officials at Jackson Hall FAC a little bit later this week that is sparking a sell off in risk in stocks and years DATE my guest this morning is Evan Lucas PERSON chief strandologist at investment group Evan PERSON good morning TIME welcome It's interesting He talks about the energy crisis in Europe LOC and we've got it in the GTV ORG library. The cost of power for Germany GPE and for France GPE on a 1 year DATE forward basis. Is Had like a record highs. A $ 1000 MONEY equivalent Much deeper and more aggressive in the Euro MONEY . Yeah I'd agree with that and and the reason I also think it's exactly how you should be looking at it is it's the spread to the periphery as well and how much pain I mean you already hearing out of Spain GPE but coming up at the moment they're already doing rolling blackouts that things have to operate at 27 DATE ยฐ it shows you the cost of Is so high and the the best prices
You already hearing out of Spain GPE but coming up at the moment they're already doing rolling blackouts that things have to operate at 27 DATE ยฐ it shows you the cost of energy is so high and the best pricing as well and I the people that I think are I mean what we're talking about here is going to see fairly large if not massive increases in headline inflation in the euros on that that is clear you cannot have that kind of energy crisis that kind of price increasing and not have to chase it and that's the next part Discussion here is as you discuss before the break around what's going on in the UK GPE the same problem is building in the Eurosa GPE in the fact that inflation is going to get worse before it gets better double digit is clear that it's The next sort of fallout and how the UCB ORG managers that is there's a next question because they're not just managing as you said for Germany GPE and for France GPE and to something sent to Spain GPE in Italy GPE who managing it for all of the peripheral zone countries and those countries that would start paying Go for it. Let's let's take a little bit deeper in that cuz there's a lot to unpag and the narrative is the ECB are gonna have to chase their tails I mean they haven't even raised rates I put it to you that we're gonna have a tree moment in Europe LOC but you're taking the other side of that tree that's ground that's fine how much more aggressive did the ECB need to get before Christmas DATE From my perspective I think they need to get quite more aggressive and starting to move towards one CARDINAL even one and DATE a half percent and and again the reason that's not that aggressive considering what you With what's going on the fed ORG or what is possibly gonna go out there the BOE ORG or even at the BO you know the BOC is all chasing that tail problem the Euro ORG has different crisis they obviously have the war on their doorstep they do have to make sure they continue Economy to move but they're going to have an inflation okay they can't catch Does one CARDINAL one and a half The Year Hawaii GPE put a base in the year at 9597 DATE or is there a deeper lurch to the left of 97 CARDINAL I'm being generous here on Euro dollar let's square that away Yes and that is the question I mean again that the missed pricing is seeing in table would suggest probably not I mean if you look at what is likely to happen from the Bank of England ORG the the speed of rate rises there it's not catch And it's not necessarily gonna save the euro because I think the market is looking for the point of view. The economic crisis is going to be a bigger problem than obviously the return that you can get from grabbing on to the euro at these cheaper prices with a high yield that's been Offer because again the inflation kill is there. The real year DATE that you're getting from EuroZone ORG is not good enough to really chase it. So I don't think it's gonna catch it mothers. I just think it easy bee has a problem now where they're gonna have to ask is it price Ability we chase or is it continuing to try and grab some form of economic stability and neither of them are good outcomes let's let's let's put that out there and that's why I think Europe LOC is going to be the epicenter of the problems for the rest of 2022 DATE and starting 23 CARDINAL . Okay let's put it back to the UK GPE starting getting crushed I had BMO ORG with me yes you say yo you're gonna get one CARDINAL last lurch to the left in Sterling GPE it's all about the dollar the dollar will top out in a month DATE 's time rather than 3 months time we can debate that forever but I Whole name on Sterling ORG . 231 CARDINAL basis points of hikes. Would not see if Sterling at the moment. City call 18% PERCENT inflation which is fairly rabid. Sterling go on the outright and on the crosses. Yeah, so I'd agree with you on the 18% PERCENT . That is a very, very big call. It's not out of this world. Let's let's also probably put that there but I would say that you know, maybe 15 CARDINAL is probably the the top where I would It will probably therefore again the question is we are arguing around the economics and what the economic crash will do and whether or not the inflation chasing and therefore the rate rises can put a base inside that currency again I still think that the moment the pricing is around the economics The all these comes back to the US GPE dollar and the attraction to the USD ORG is just so strong that even with that catching of inflation it's not gonna be enough to have set it because you then look at the euros zone you look at what's going UK GPE and the economics just don't stack up to try and chase that yield because again if you look at real yields with let's take cities idea of 18% PERCENT that is still not gonna be attractive enough to really go near it cos you real yields are cru You will not space and that is why currently trade is consist one CARDINAL road and that road is the USD it's the safest it's the biggest and it's the one that's giving you the return in the current market Do you know we managed to do Evan PERSON do I
A one CARDINAL road and that road is the USD. It's the safest. It's the biggest and it's the one that's giving you the return in the current market. Do you know what we managed to do Evan PERSON do you wanna make history on Bloomberg Go on You managed to not even say the word Jackson PERSON whole in the wake of Jackson Ho GPE that's more mindful than yours to be fair. To be fair. I was driving the bus. Having good luck. Let's see what Jackson Hall ORG delivers for the market. The chief market strategist at investment group. Making history on Bloomberg PERSON . Right here. China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs of more than triple since the year 2000 DATE That consumption has helped to feel astonishing growth but it's come at a cost. There is no way to tackle climate change unless China GPE reduces its emissions to need oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hamper industry All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Let's get a quick check on my latest business headlines from around the world. Zoom fell in late trade after projecting sales and profit for the current quarter DATE Hey Competition intensifies from Microsoft Teams ORG . Mutually agree that he would depart next year DATE . From lockdowns and Chinese NORP consumer boycotts The company surprised investors with a profit warning in July DATE following a slower than expected recovery in Greater China LOC . And forward is cutting 3000 CARDINAL jobs this week DATE to fund the shift towards electric vehicles. The cards will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . See you Jim Folly PERSON has repeatedly said the company is too many workers Ford ORG is planning to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles A year DATE by 2026 DATE . Where do you go for your summer if you live in New York the Hamptons and it got a lot more expensive from the second quarter of 2019 DATE prices rose by 88% PERCENT but if you want a chicky number in the Hamptons well prices are dropping And quite aggressively for April, May, June, July DATE . Let me show you the sequence of discoint. Santa GPE and April DATE she tanked by eight CARDINAL . Four% in May DATE they wobbled furiously in June DATE Dawn
Wobbled furiously in June DATE dine 11% PERCENT but don't fear as I say prices Have risen by over 88% PERCENT . Since the second quarter of 2019 DATE and 70 CARDINAL homes still sold for more than QUANTITY 10 1 million dollars. Oh to have a home in the Hamptons. Let's see whether Danny Berger PERSON has we had cheeky little number. Eh up there Okay we'll leave you with those thoughts of the Hamptons and what you might want to Dream of Let's have a look at equity features. There you go. Swimming pools, canopies, let's have a look at the torture. You need a little bit more in the equity markets. I mean, yet tanked by two% ORG on spooze yesterday DATE , two CARDINAL . Five% on the Nas X. Equities ORG this morning TIME . The summer DATE of love, deteriorates, the risk reward is skewed at the moment according to Morgan Stanley ORG , for cash, Do you see that coming through 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People analyze Marcus You can enter phrases. Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. This is Binberg Daybreak PERSON Middle East LOC . Our top stories this morning TIME . Saudi Arabia's GPE energy minister. More than 20% PERCENT since June DATE . City group says the energy crisis could see UK GPE inflation. Top 18% PERCENT next year DATE . The point falls to the weakest level since March 2020 DATE . China GPE steps up. It's efforts to stem a deepening property crisis. The government is offering special loans as the PBOC urges banks to lend more. Inflation Let's check in on those Where will you take us Well maybe I'll start there manners because certainly the one has very much been in focus you can see it weakening further now against the dollar about a 10th ORDINAL of one% ORG but we did have some verbal intervention earlier from Korea GPE really trying to stem that slide yesterday DATE of course the one falling to that 13 year DATE low and we heard from authorities saying that they are Confetti ORG offshore speculative factors. President Yuk PERSON
Of course the wine falling to that 13 year DATE low and we heard from authorities saying that they are watching 30 CARDINAL offshore speculative factors president Yun PERSON also talking about One but it hasn't really done much to stop that slide although we did have a bounce earlier it is though a risk of session you can see yields rising stocks broadly lower as we look ahead to Jackson Hall FAC and regional stocks down for a fourth ORDINAL session so that is actually our longest losing streak in around 2 months DATE and the benchmark index holding At about a 1 month DATE low and what we are not seeing too much support in is in those property players in Hong Kong GPE and China GPE despite that $ 29 MONEY . 3 billion injection from authorities to try to stabilize that market so investors still very nervous and cautious about the overall property space in China GPE minus Well done segway beautifully perfectly at one CARDINAL area of the upside is tourism stocks in Japan GPE are you off to Japan GPE have you been to Japan GPE recently is it on the list Look, I know you're gonna give me some grief about talking about tourism. I've never far from a tourist story but look, we are actually seeing some very good games coming through. In some of these reopening plays in Japan GPE and this is on a Nike Report that they may actually scrap that PCR test that is needed of course this is one CARDINAL hurdle that travelers across the world are not really wanting to take at the moment and there is also a report They could actually scrap the cap on the number Still quite tricky to get there so if this is ease that is going to be a good boost for this overall economy and reopening stocks moving higher versus a downbeat topics in Manus Mt. Cranfield LOC puts a really interesting point about these reports that some of the quarantine measures in Hong Kong GPE could be eased for a business summit in November DATE Trade is not really buying into that story they want to hear that quarantine is gonna be scrapped all together before you see that reopening play in Hong Kong GPE manus Okay Jill PERSON thank you very much you did Sally PERSON at tracking her next move across the globe she's coming to an airport near you to Israel they had rates by the most since 2005 DATE tightening up their grip for the fourth straight month DATE the move surprised economists who have been expecting a smaller increase among Good to see you. We'll get you a travel plans at the moment. But what a vicious old hike, okay? That's right and this is actually the third ORDINAL time this year DATE that economists have been surprised by the aggressiveness of the Bank of Israel ORG with a message from the bank very clear we're seeing very strong growth Labor ORG market and we're seeing inflation and it's quite broad based and that's why we feel the need to hike rates by 75 CARDINAL basis points more than economists we're expecting an in fact the central bank doesn't believe Gonna get down to its target rate of one CARDINAL to three% inflation The second quarter of next year DATE at which point it'll hit 275% PERCENT . You know interest remain rate remains low even after this hike at two% ORG and that's really what we heard from economists Michael Nyes PERSON at city group saying this move leaves us in no doubt that more tightening Hike at the next meeting in October DATE and then again in November DATE this this we'll see how this plays out over The Bank of Israel ORG a little bit more room to run here. And the face of the Iran GPE nuclear deal hangs in the balance but there are signs of progress both from the US GPE side and from what the Europeans NORP are saying. Yeah, the US GPE side is really important because we hadn't Remember the EU ORG had its final text then Iran GPE said well we have a few changes they sent that back and then that went To the US GPE . But the first ORDINAL indications that we are hearing is that this is positive progress. The US GPE saying that we are closer to a deal than we ever have been. And they're saying that you run drop some of its demands that they considered non-starters One seems to be the declassification of the Iranian NORP revolutionary guard core as a terrorist organization that something iron had been pushing forward but the US GPE had stirred firmly against that said a lot of the discussion recently has focused Economic gear.
Terrorist organization that something iron had been pushing forward but the US GPE had stirred firmly against that said a lot of the discussion recently has focused on the economic guarantees Iran GPE that might factor into place if they were to come back to the deal the US GPE has largely said it can't really guarantee that much and that's why a lot of strategists who've been following this for the past couple of years DATE still pretty skeptical that we are going to see a deal here that said oil markets were looking at triggers Implemented in a phase fashion over the course of several months DATE and likely really only playing next year DATE that said Iran GPE says it could ramp up it's product Capacity to more than four 1 million barrels per day by March 2023 DATE . You know, that would have a really significant impact on on the tightness Oil market that we've seen for the globe. Yep I I'd certainly a huge issue let's talk about Pakistan GPE because we got officials that are saying the country will receive billions of dollars MONEY in support but it comes from Kata sorry Arabia and the UAE do we have Detail PERSON as yet. Yeah according to the acting governor of the Bank of Pakistan ORG at Cutter Pledge two 1 billion dollars WORK_OF_ART in support for Pakistan GPE Saudi Arabia GPE will your mark financing for oil of to the tune of one 1 billion dollars MONEY in the UAE ORG will do Things similar. This very important for the IMF ORG , the IMF ORG has said, we're willing to consider financing for you but we See what golf countries do first we want them to form up the commitments before we make a decision that decision could come at a meeting that's happening next week DATE so we're looking for a potential announcement of this formal plan perhaps today DATE at the prime minister right now is going to be visiting For the next 2 days DATE so that's potentially when we could get this announcement that said assets and Pakistan GPE have been under a lot of pressure we see in consumer inflation over 20% PERCENT and then the Talking FAC about in the past couple of days DATE potentially pressing suit against former prime minister Imran Khan PERSON investors haven't loved that and we've seen the reaction and the Market with bond prices dipping across the board Okay so well thank you very much on Fox Minda PERSON at the Financial Centre FAC in Doha GPE with a very latest round up on the Middle East LOC markets well mini markets they did well in July DATE and in August DATE that global boost across equity markets rebounding 12% PERCENT from the lows but the FG ORG home is things that the second half of the year Be a bit trickier Simon Kitchen joins me now will it certainly getting tricky at home in London GPE where you are tricky in Europe LOC and certainly some of the bullishness and stock assignment has been prigged overnight so how much trickier does it get for Mina GPE ? Morning manus. I think that you've had a very good rebound in the past 5 weeks DATE had some sorts look at Martin ORG per nearly 60% PERCENT asking his pricing and awful lot and I think you know it's second quarter was Hey Facebook Please but it's gonna be a bit more a bit more normal in that in the second half of the year DATE . And these stocks are pricing and awful lot. So I'm I'm slightly surprised that the Rajhi ORG survey that says that Hey Out there gonna be weak. In the in the second half of the year DATE and I think you wanna look more stocks that offer yield and and I think staples are interesting as well. Okay I mean the Araji survey it is out as you say they expect here's a shot banks will open I'd love to find a broker in in the Middle East LOC that doesn't wanna buy banks banks will like perform petrols and software and services but if I look at the breath of the Alraji ORG survey They are cooling a little bit more towards siding so he has I performed and you would flag that overall how much of a breath or pores you get inside I think you see, you know, quite a bit of consolidation. I think you'll still soon rate rises on that.
How much of a breath are pores do you get inside I think you see, you know, quite a bit of consolidation. I think you're you're still seeing rate rises on Gonna be soft I think more of the interest is is gonna come from Which is her results for the second quarter DATE so what I'd be doing is playing South Africa GPE and selling Martin Okay so you you you Trade that as a spread or you'd do that as a switch. In terms of the flow a great deal has been made throughout the first 8 months of the year DATE anyway assignment in regards to institutions and overseas institutions under allocated to minor do you think there are at benchmark do you think that they begin to hold steady naira how do you see the flows in the last quarter of the year DATE Hey Facebook still incremental money to come into to the region I mean some of these some of these activities Still quite slow moving and remember that our markets are still quite high touch Compared to two CARDINAL over longest standing emoji markets. So that means that incremental money is still gonna be coming in. I think that's the fireworks obviously that you saw in in the second quarter of the year DATE after the base interview crane. Those are behind us and and the overall context of course Is one of Yes I think from managers we'll still be adding more Money to commodity Exporters like the GCC ORG away from Mall Mainstream AM FAC so that is in our favour it's just a perfect local investor in is gonna have Out of arrest. So I'm available Brent 97 22 LAW WCI ORG 91 15 how important was ABS's intervention in New York GPE A cut in production from Opec Plus because of this divorce between of reality between future's prices and the tightness in the physical. Well it's a it's a tricky situation cos you've got so many signals on Earlier about the ignore the Iran GPE deal and is it gonna come through but then you got US GPE midterms in which Republicans NORP might come in and sort of that deal Sanctions ORG coming through on on Russian NORP crude like he was here and then as he says in his comments paper market is very thin So I think he's just putting that option there on the table because he doesn't want to see it complete Market but it is not necessarily gonna have to follow through If if you wanna say the Iran GPE deal doesn't come through or if if Russian NORP crude is is finally taken off the market Okay, Simon, thank you very much. Simon Kitchen there. My guest this morning TIME on Meeter Markets LOC , managing director, head strategy at EFG Hermes ORG . This is Bloomberg PERSON .
What is your base case for Italy GPE in terms of what happens This week DATE as the world watches inflation rise employment rebound Written Summer has already been punctuated by scenes of trouble chaos and there is more to come workers of the country's largest container shipping port Reports from Felixda ORG . This is a significant moment in the UK GPE 's summer DATE of strikes. Felix Sto PERSON is the UK GPE 's biggest container port and Four 1 million QUANTITY containers pass through it every year DATE . So the Russell PERSON group estimates that about Going to be affected by this 8 day DATE long strike. We're on day two DATE . It's about 2000 CARDINAL workers who are disputing their Here in the UK GPE . In terms of how disruptive It's a monitoring 11 CARDINAL more that will add to delays and costs Black sports as it's going to take 24 days DATE to clear the backlogs and port officials are saying that the port is operating at less than 10% PERCENT capacity but of course disruption is the whole point of a strike the unions are here to send a message they've already rejected one CARDINAL pace settlement that would have Less than the 10. One% inflation we're seeing here in the UK GPE now the At the port say that this pay rise is to cover the whole of the year DATE and inflations only just tipped into double digits they'll revisit the issue next year DATE if inflation is as high as city thinks it will be 18% PERCENT city seeing now but in the meantime there is the risk that the Through wage price spiral contribute to the inflation that Trying to shield their members from through the strikes. Lizzy PERSON Burden for Bloomberg News ORG in Felixa GPE . Let's go back to our Middle East LOC markets now with our equities reported far at Abrahi ORG . She joins me around the desk. We've got this From Alraji Kappa PERSON and we just been talking to some of the cause and it in regards to Patrick Comical's ORG we had some of the broad brush strokes a little bit earlier what should I like for you absolutely so looking at the fund manager survey investors are actually less bullish madas This quarter DATE than they were in April DATE . That's about 22% PERCENT of investors seeing that today DATE going up over 10% PERCENT by the end of the year DATE 48% PERCENT expected to perform in the five to 10% PERCENT rage and meanwhile we have about 30 Expecting it's actually Be flat on the year DATE or up as much as five CARDINAL So that's a little bit of a mixed performance over here definitely very different than the performance we've seen in April DATE I mean in terms of the Patrick PERSON chemicals yes that is a little bit Rising but the banks they're still the top call in Saudi Arabia GPE among investors meanwhile ensures are the least among the least favorite sectors as well as capital Goods NORP and retail retailers. Talking about a switch out of my Of planes some of those side exposed
Retail retailers. To switch. Some of those side exposures. With some big volatility in some of the big names inside yesterday DATE of course is Royal Heims ORG came out to create a floor in the oil market but talk me through some of their premierations around this side eating narrative. Well, looking at the stocks that sit up to me personally yesterday DATE , I think their earnings are still a little bit of a key story inside the area but even though we're towards the The company sword for a second day DATE after reporting better than expected earnings but really what the market is doing here is compar That actually had rather lackluster earnings. They missed estimates. Meanwhile, so that go came in and beat meanwhile also Nahi PERSON which is a company that recently debuted in Saudi Arabia GPE sort of fresh record. Again Better than expected earnings. It is a top pick for Ubar GPE capital because it's to play on the social reforms and infant care. Give us a quick call later on. We'll have them on tomorrow DATE morning TIME . We'll talk about the milk prices. In terms of the Israelis NORP of course going for a mega hike Really shocking the market I would say what are the ramifications for stocks well stocks dipped quite a bit after you know the centre bank decision certainly there was global pressure on equities around the world but you could see that the market was definitely Can buy surprise some of the key drags on the TA 35 of Steva GPE was Banklumi Israel discount bank soap again the lenders coming under Globally banks aren't actually benefiting that much from the prospects of higher rates because of these fears of a recession globally not just you know in the US GPE so that's what's going on the With more red hacks seen down the line in Israel GPE keep an eye on the lenders as well okay fine thank you so much for Lives on the equity market course Here in the Middle East LOC . Fine. Thank you. This is Bloomberg PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE . By Bloomberg PERSON 's Amanda Gordon PERSON . Investors are kinding down to Jackson Blues PERSON on. For decades ago DATE he says the fed ORG should be more communicative On where policy has got to go. If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now
Another maybe 75 CARDINAL basis points the next song we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now we've learned from history on this learn from our experience is the more the vet can communicate what's objective is it would like to get back to two% ORG inflation and need to do Reduces inflation doesn't reduce the growth the economy just inflation better off will be so that communication that stipulated about what the policy will It's very important right now and I hope that that does that. John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what roller half CARDINAL financial conditions play and should the fed ORG be paying more attention to this or at least a loot to that fact in order to sort of bring down This bullishness that we're seeing. Well, they have Attention to the the market This is what needs to be done. This is what's worked in the past. This is how we can do it The the more convincing it will be. I think that what the markets don't like is uncertainty about what's gonna happen to us more uncertainty today DATE . I think that's one of the reasons why the market's went down. But the the more that the Communicate PERSON So called Taylor PERSON whatever you wanna call it or advantageous cuz it says hey we need to move a little bit further and hopefully that will cure the problem a more rapidly than people expect. John when you wrote about this and that in 82 CARDINAL you flagged the scenario right early deceleration risking the issue around credibility and then the the risk of of really disinflation causing a recession given perhaps from the Errors before does that mean we're at a point where recession is going to be maybe a likely cure for this about inflation I don't think it needs to be part of the cure but we we've experienced if we let inflation build up one CARDINAL more time like it's in the 70s it was 7 years DATE of hiring place If we nip it in the bud which I still think we can then you don't have to have this negative effects that people worried about the right to worry about cuz they've seen in the past but the more that there can be A stipulation. This is what we need to do. This is good. Make the economy healthier is to make a stronger growing economy faster and I think that's what we should emphasize. This is better for job. Just as better All over the place right now. And we'll be live at Jackson Hole FAC later this week DATE forward that crucial power speech as well as the interviews with the fed ORG presidents from Kansas City GPE , Philadelphia GPE , Saint Louis GPE , Cleveland GPE , and Atlanta GPE . You fed me up. Okay, now. To understand this scale Of the energy crisis Rest of the world but I wanna focus on your this is Dutch Gas ORG features five CARDINAL times the equivalent of a barrel of oil. Now that that just gives you some kind of understanding. But how does that translate to inflation for the central bank? Looking at inflation in the GTV library not just the Dutch NORP gas features but the energy Year on year DATE . Now you understand why the economic headwinds for the euro are turning into a hurricane. We're subparity for the first ORDINAL time. Again, in 20 years DATE , you're getting colds out there. 95 CARDINAL and 97 DATE . Morgan Will ORG continue lower. From London GPE HQ and our Middle East LOC HQ. It's a beautiful day. It's Dom in London GPE .
When the price of anything goes up, the consequences reach far beyond what you'd expect. But perhaps most of all, when it comes to food. In 2010 DATE surging food prices help spark the Arab Spring lives were lost regimes fell and the consequences are still with us Once again food prices are rising and fast Energy cost broken supply chains and surging demand were just some of the factors that have driven food prices to their first ORDINAL record high since the Arab Spring EVENT . And that's all before a war between two CARDINAL of the world's biggest food producers. Ukraine GPE is called the bread basket of Europe LOC and taken with Russia GPE the two CARDINAL account for about a quarter CARDINAL of global we trade they produce more than half CARDINAL of the world sunflower seeds and oil nearly 20% PERCENT of the barley Now throw in rising energy prices and processing transporting even refrigerating food is more expensive plus fertilizer production is extremely energy intensive less fertilizer means lower prop yield and prices rise even more. Pandemic revealed how complicated and fragile global trade systems are Global agriculture, perhaps even more so. Unlike metals for example, food goes bad. In crops take months DATE to grow in our vulnerable to unpredictabilities like the weather. Rising food prices will be felt everywhere but the poorest countries in the world will be hit the hardest. And as all these factors compound the real fear is that record high will lead to record high and ultimately to a global food crisis with vast consequence. On the David Rubenstein show Hear conversations. Cover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that rising. This is Bloomberg Day Break Your Up I'm Danny Burger PERSON in London GPE alongside Manish Cranny PERSON in Dubai GPE and these are the stories that's set your agenda. Crisis compounded European NORP gas prices continue to search ahead of another supply disruption as German NORP chancellor Schultz Infrastructure ORG has been built in Germany GPE and that is short time Recession fears and winter DATE warnings push the Euro dying To two decade DATE low concerns about growth continue. After Saudi Arabia's GPE energy minister warns the alliance could cock production Danny PERSON a very good morning is Royal Highness Bills ORG of Florida GPE in the oil market but it is about FX ORG and FX ORG ball that is ground oh for me in terms of risk. Danny, good morning TIME . Good morning TIME , man. It's remarkable. How quickly are obsession, the narrative of this market has changed to watching equities float higher with hopes of a fed ORG pivot to obsession over the energy crisis in Europe LOC with
The narrative of this market has changed to watching equities float higher with hopes of a fed ORG pivot to obsession over the energy crisis in Europe LOC with those prices just Rocketing ever higher. Sergena Way PERSON And we're not an extreme volatility yet let me take you to Grind oh which unseated risk which is right over three% GPE and they're building up the short positions volumes on short positions on euro dollars going into Jackson Hall FAC on Monster LOC oil has a Four% weapon is raw harness expensive dollars has been someone talks about potentially having to cut because there is some kind of a schizophrenic divorce between future's prices and reality of the oil market We are seeing levels we haven't seen in 20 years DATE and it is because of the very essence of the They're gonna have to do. One CARDINAL , one CARDINAL and a half percent to get price stability. Put that in your FX ORG pipe and smoke it cable crushed one 1765 DATE and we are not done yet. City group calling 18% PERCENT in terms of inflation. It's a crush Danny GPE good morning TIME . Morning manice will the calmness of equity future this morning TIME belies the move that we saw yesterday DATE some extreme volatility a drop of more than two CARDINAL When it comes to S and P 500 futures there was a slight rebound to start your future session now they're unable to hang on to that S and P 500 features they are After that Friday DATE option now dealers are positioned Way. So there's your view in Europe LOC and the US GPE . Let's head Studio jewels. Danny certainly the same here in fact the energy set to really the only bright spot on that rebound in oil but it is a risk of session for a fourth ORDINAL session today DATE across Asian NORP markets and really being led lower via Japan GPE you did have this move Chinese NORP authorities to try and stabilize the property market $ 29 MONEY . 3 billion CARDINAL worth of special developer loans but that's not really helping out the property stocks too much down by about nine tenths CARDINAL of one% ORG in the afternoon The CSI ORG 300 CARDINAL losses though I guess a little bit better than what you're seeing across some of the other markets. You talk about FX ORG two. I mean we've been watching very closely what's been happening in the wine and earlier today TIME there was actually some verbal intervention to try and stem this 13 year DATE slide against the Greenback PERSON you did see a bit of a bounce there coming through on the warm we also heard President Yun PERSON but as you can see the dollar once again king up by about two CARDINAL tenths of one% ORG and let's put the board and have a look at what we're seeing more broadly and Asian NORP stocks cuz as I mentioned we're down for a fourth ORDINAL session the longest losing streak in around 2 months DATE holding around a 1 month DATE low we've gone through the 150 day DATE movie average and looking like we are going to of course You to fail at that point till if we get through that mark we're going to be back to around a 2 year DATE low on this index manus. Jill PERSON thank you very much Stuart PERSON with the Asian NORP markets let's get to the team of reporters around the world Andrew James PERSON joins us with the latest production warning from Opec ORG more detail from Aswan GPE Hines Berger Berlin PERSON to shed some light on this German NORP gas crisis the scale of it and what Christian NORP what what chance of shoots is trip to Canada GPE means Danny. And we'll also get a preview of some of the numbers when it comes to Europe LOC with those European NORP mines do later today David Palace PERSON here with us in London GPE but Manus PERSON let's start with the oil story with Saudi Arabia's GPE energy minister And it's allies maybe forced to cut output as the future's market has become increasingly disconnected from fundamentals from what we're joined to buy Bloomberg ORG 's Andrew Jane's PERSON so Andrew I mean is this a broken market and what is that mean for what Opec does from here on out? Hi, Danny. Well, I'm not sure it's a broken market. I mean, the south is talking about a disconnect between future's prices Market PERSON .
Hi Danny well I'm not sure it's a broken market I mean the south is talking about a disconnect between future's prices and the market fundamentals and Saudi NORP Was also saying things about unsubstantiated stories about demand destruction Kind of interesting to contrast their attitude. They were quite hands off when prices were going up but now they're coming down. They're a lot more talking about decisive action. Yeah so this is gonna they're talking about production cats and this is gonna make things pretty interesting heading into the next opac plus Eating PERSON an early September DATE . We saw a big market reaction yesterday DATE when this first ORDINAL came out we'll dropped as much as almost five% but it's sort of closed little change and we're up moderately today so yeah expectation is that there could be some cat spots going by the market reaction I don't think The view I don't think is that we're not not in for huge reductions there. Yeah it it's not the amount Andrew it's the messaging we've just had a cut One would say to appease global geopolitics And suddenly to reverse on that throws throws a spanner in all the the lobbying that we've seen Andrew let's see what happens in the September DATE meeting Andrew James PERSON that was very latest on Opec ORG to the park crisis in Germany GPE and Europe LOC we're seeing part prices in Germany GPE surgeon to over โ‚ฌ 700 MONEY and mega watt hour for the first ORDINAL time The market's in panic over the country's dependence on unrevival Russian NORP energy supplies chancellor all of Schultz is in Canada GPE part of the push to find alternative sources of gas and emphasize that the government is working hard Dependence off Russian NORP imports. We are deciding on making it more easy for companies to switch Going back to oil Necessity of Let's get to Burger Jane ORG and she joins his nicer burger. Here we are. Germany GPE . I had one. I had Kristoff Rude PERSON with me here. Yes, he said the front page of Germany GPE . No longer have COVID charts. They now have energy storage charts on a daily DATE basis gas stored charts. Hitting real crisis levels aren't we Well, it is going to be difficult. There's no doubt. Basically, Germany GPE is facing a for the coming months DATE . A shortage in energy and we have to see how the winter is. The government is Looking closely at the temperature really in in autumn so because they still have to fill up the storage at the moment it's 80% PERCENT but to get through the winter and also through the next winter DATE they know they have to build up more and this is also the reason why basically salt is travelling the world he has been Way and now he's in Canada GPE in order to basically get gas for Norway GPE or also Canada GPE in in terms of LNG ORG . Alright, Burgett PERSON . Thank you very much. Bloomberg PERSON 's Burger Yen PERSON and we'll be back throughout the program to help us cover the energy crisis. Now, speaking of which, we are gonna get European PMI's ORG this morning TIME for August DATE . They'll provide more insight into the challenges facing the euro area. Economy with this sort of energy cross cost That burger was talking about in the risk that Russia GPE cuts off supply for more let's get to David Powell PERSON our senior year economist for Bloomberg PERSON economics I mean David I'm I'm assuming that these numbers I Can even have the worst of it in them Likely to to to get worse. They won't reflect this most recent surge and energy energy prices. We've just spoken of because the reporting period is already over for the survey. But in all likelihood the survey is going to remain in contractionary territory after having fallen below 50 already in the month of July DATE . Hm. David welcome back to Daybreak Europe LOC now we've got you up early We're gonna keep you coming back in again and again. So, my last guest in the last hour TIME said that the ECB is now so far behind the curve. They're gonna have to not just raise rates by 50 CARDINAL basis points, even in the eye of an energy crisis, but 150 CARDINAL basis points, and this
That the ECB is now so far behind the curve. They're gonna have to not just raise rates by 50 CARDINAL basis points even in the eye of and energy crisis but 150 CARDINAL basis points and this is where the real catch up game begins to come to play. Does that does that even make sense to you 150 200 CARDINAL basis points by Christmas DATE time from the UCB ORG . Well, we look for the ECB to have to raise have raised to about one CARDINAL . Five. That's the deposit rate by the spring of next year DATE . So, in total, that would be 200 CARDINAL basis points from the start of this hiking cycle because remember, they began at negative 50 CARDINAL basis points. So, the next step in It's likely to be AA moving September DATE of 50 CARDINAL basis points and then we expect 25 CARDINAL basis points at each meeting after that until March DATE . Okay, David, thank you very much. Let, let's see what September DATE brings to us. David Popp PERSON , our senior, your economist for Bloomberg PERSON economics. Coming up, the perfect storm, we discussed the Euro ORG slide, Across the region. Later in the program. This is Bloomberg PERSON . Is it possible the industries in an arms race that will Lead to spending itself into an over I mean that has happened before. We we've looked at this very carefully and yo the digitalization of everything tell me what aspect of your life Emily isn't becoming more digital Prevent that but yes. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall and estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point. I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Technology can satisfy that needle. As the world watches inflation rise employment rebound Economic policy symposium. Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving It has been mostly a dollar story. Europe LOC hasn't under performed as much as I think it should. I think the the FX ORG market is totally miss pricing. The situation you're the situation is a complete rethink of the economic model near your zone. And I I'm just it is struggle. It's strange for all of us to see the euro. Sending off so slowly. I think it should be much We'll be testing 97 50 CARDINAL down towards ยข95 PERSON in the next few months DATE . Jordan Rochester PERSON there no.
Slowly I think it should be much faster we'll be testing 97 50 CARDINAL down towards ยข95 PERSON in the next few months DATE Jordan Rochester PERSON there no you're a G 10 FX ORG straw just manage who says that we could see euro hitting ยข95 PERSON we certainly punctured below Waffling PERSON with that and that's perhaps The reason why the euro hasn't had as dramatic of a Perhaps we've been ignoring just how bad things might get in the region. And the very essence of Rod Rochester PERSON had to say goes to the heart of the issue which is the explosion and energy crisis. Let's have a look at the Euro PERSON dollar and the euro on the crosses. You were talking about it at Seen below a 20 year DATE low and again cascading lower all the way down as you can see there Danny at down over one% ORG in the past 2 days DATE . Let me just show you what's going on in the energy market. This will bring to Kiran Ganash or Gast Is the explosion in energy prices for France GPE and Germany GPE at you're looking at Electricity 1 year DATE forward in French NORP and German NORP electricity prices German NORP benchmark year ahead prices hit โ‚ฌ 700 MONEY per mega 1 hour TIME for the first ORDINAL time ever yesterday DATE and that is hitting the region it's facing a multitude of Your issues right now. The fallout from the war in Ukraine GPE driving the energy in the food costs. A severe dright. Let's put all of this to Kieran Ganache PERSON . He's the multi-acid strategist for UBS ORG global wealth management. Karen PERSON , good morning TIME . Honey ORG toxic Is the euro at the moment Well it's not in a good spot that's for sure because we've got these surging energy prices and even a hawkish easy beer would seem is more than the fed ORG so FX ORG is a relative game we're expecting to be the euro falling down to 95 CARDINAL sent against the US GPE dollar over the next few months DATE as well and it's really Deteriorating is putting the European Central Bank ORG in a very difficult position. Kieran PERSON I I might be being a bit dramatic here so so feel free to you know put me in my place but do we even care if you're trying Possibility of Europe ORG freezing of the main growth and the main exporter Being unable to do so in an energy crisis. We meet certainly potentially a very severe headwind for the global economy and particularly if as chancellor Schultz was still talking about earlier on your show at the Deer Me starts shifting their electricity production away from gas and towards Decline ORG inflation that decline in inflation and expectations which is really help support the market over the course of the past few weeks DATE . If we start seeing oil demand rising because of this gas crisis in Europe LOC then you may even have inflation and surprises to come And that could put the whole global picture log into It just seems so ottered every morning you get in the car and you just read one Story after another Jackson Hole GPE rates starting crush euro mangled China GPE imploding And Mark Hayfully PERSON hey sleep at night TIME and B Hi do you deploy Morgan San Leandro Sheets ORG yesterday DATE big headline on Bloomberg Cash PERSON was more appealing than stocks no would you agree with that at the moment in the short Look over the short term we think there is more chance at the market falls than than rises I mean I think we have got a lot of uncertainty had a lot has been priced in in terms of a fed ORG pivot in the South Landing I think that these tankers is still gonna be need to be tested and by the market what happens if oil prices start to rise what's going to happen in winter DATE There's a lot of risk that isn't in the market right now. So in the short term and I think there is more chance that stocks fall than rise. And I think what we're talking about with investors as well. What if they do rise do you still have a plan to make sure that you're getting invested for the long term? Is that supposed the big risk for our clients in this kind of period? Is it the volatility perturbed them from the market 3 or 4 years DATE and so
And then they never get back in over the course of 3 or 4 years DATE and that's when it gets really costly. Yeah, yeah, Karen PERSON . To this idea that, you know, we we don't have a grip on on exactly how things will look. I mean, everyone was transfixed by the city story yesterday DATE that inflation in the UK GPE could reach 18% PERCENT in a gas crisis. Are you For this kind of environment right now. Or we're expecting to see pain weakness as well we're looking at 115 CARDINAL against the US GPE dollar coming up and you know I think the bank of England GPE was already forecasting 13% PERCENT and before the latest surgery we've had in energy prices so been really very very significant adjustment is taking place In Europe LOC to this change in in power prices and it's gonna take a very long time for it to work through in terms of FX ORG raids and the implications for the broader economies so now I think for for investors you know staying well diversified at this time is really important and New Europe LOC is not a place that It pays to take that go bats right now But you'd still sort of favor the US GPE 's is my sense on on reading. I like what you say which is use these rallies and we have had monster rally in July DATE and August DATE to technically lighten up the portfolio. I presume that that is don't chase the rally but reduce your excess exposure. Where Reduce exposure the most. Oh we think in technology is one CARDINAL area where we are are concerned because we have seen that big rally recently and you know of course parts of that spectrum are cyclical as well think about some of the digital media names I think about the Names ORG . So we're talking about lightening up there. Areas we like are eh energy because we think that is a good hedge Again some of those downside scenarios for portfolios and we also like the UK GPE market perhaps ironically given the situation in the UK GPE but given the weakness in the pound earnings for you head companies are actually holding up relatively well and it is quite a defensive market at the moment Yeah yeah I'm guessing again it's some of those large cap UK GPE names maybe not the domestic plays Kieran PERSON you know this earning season we equity is held up relatively well especially The US GPE but when you look at the global picture especially in Europe LOC and those expose to the energy crisis You expecting are you pricing a severe earnings recession to come in some of these equities? I mean I think we were Minus 15% PERCENT earnings grade four CARDINAL starting to get priced in and been able to have this rally over the course of the past few weeks DATE and a lot of that negativity has got priced out and as part of why you know we think there's more chance that we see downside in the near term then upside that summer back concern about growth doesn't need to come The price and before they look more appealing on a tactical basis and out of you. Hi Barry PERSON show you for Jackson Hole FAC we've got the whole world shooting euro dollar shorting software and that that there's anaphylactic shock at the short end of the curve I use fixation Well, in in some ways, the Fed ORG pouring a bit of cold water on this pivot story within could be, could be actually an important factor for the market because one of the key risks that we've been looking at for is this idea that Inflation does fall in the near term because of lower commodity prices and the COVID supply chain issues unwinding and then too many investors get sucked into this rally in believing the story that you know information is now on the constant downward path perhaps even the fed ORG gets soaked into it and then we have a issue mostly during the year perhaps when because How crisis in Europe LOC or yeah other issues wage stickiness inflation surprises to the outside and then you get the pivot that would be much worse so no perhaps it's not the worst thing in the world if the feds pause a bit of cold water from the pivot story at Jackson Hill GPE this week DATE . Alright you destroying me here and just daddy's gonna say thank you but can I just say for the record I'm one of the ages that got sucked in I got in the car every day July DATE and August DATE like We can open up the pension statement not anymore. I was gonna say Karen PERSON I'm only thinking you because you know it's a lot of doom and gloom but it's really great to have you.
Not anymore. Leave it there. Gonna say Karen PERSON I'm only thinking you because you know it's a lot of doom and gloom but it's really great to have you Karen Global PERSON wealth management. Hey, maybe we'll end here with something to look forward to. If you've got dollars and you wanna buy a house in the Hampton LOC Now my beer time people selling houses there slashing prices or discuss that a bit next. This is Bloomberg PERSON . When I started I had no idea it was gonna turn into this. Empire. I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Velocity Danny. Velocity. From UBS ORG 's a call Yeah 95 CARDINAL from UBS ORG seeing some other ones maybe not as dramatic 97 CARDINAL but we're just hearing from Kieran Ganache PERSON 95 as possible manus we're looking at steady declines in the euro this morning TIME down 2 tons QUANTITY of a Treating at 99 21 DATE the drama continues madness even in this low liquidity period. Yeah let's get across to Jim PERSON 's we'll come back to the boards in just a moment Jules ORG has got Juliet Sally's PERSON in Singapore GPE with the first ORDINAL word news jewels Matters the US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE . This after president of Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dastardly crime. Ukraine GPE is preparing to celebrate independence day on Wednesday which March 6 months DATE since Russia GPE 's invasion To Anthony Fauci PERSON who became a household name during the pandemic is just stepped down at the end of the year DATE the top US GPE infectious disease expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease outbreak since the HIV crisis the 81 year old DATE says he's leading The next chapter of his career. British Airways ORG says it is scrapping 5000 return flights in the coming months DATE this after cancelling about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curb curves that it's London Heathrow FAC Hub BA says passengers who've been affected can read
Answering about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curb curves that it's London Heathrow FAC Hub BA says passengers who've been affected can rebook alternative flights or seek refunds. Global news 24 hours TIME a day manners Danny Jill PERSON If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this and why I'm This trend is coming. It's not going to stop. Cryptocurrency version of Silicon Valley LOC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. It's a really a reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse This is Bloomberg J. B. European Dubai PERSON . Danny Burger PERSON alongside me at London GPE HQ with the stories that set your agenda. Crisis compounded European NORP gas prices continue to search ahead of another Looks GPE to Canada GPE and search of alternatives. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never Infrastructure ORG has been built in Germany GPE and that is short time. Hello parody recession fears and winter DATE warnings push the euro down to a two decade DATE low concerns grow a further declines. Cut production to curb recent price drops. Man, it's good morning to you. It continues to be the euro taking another leg lower this morning TIME as In Europe LOC is top of everyone's minds. And no central banks to be able to save the currency whether it's sterling Or the euro and it is ultimately no exhaustion in the dollar. I like what Jordan Rochester PERSON has said. Focus in on your dollar. This is the fourth day in a row DATE you've seen the Euro dollar Two CARDINAL . Five% subparity. How much deeper will it go? 95 CARDINAL say UBS ORG . The FX ORG market is missed pricing. The energy crisis. Those are the words of Nomora GPE 's Jordan Rochester PERSON who calls your dollar down to 95 CARDINAL cable. Even You're looking at the lowest price since March 2020 DATE inflation priced at 13% PERCENT and you're looking at the central bank pricing in 230 CARDINAL basis points of height even that This is a dollar story as well.
Since March 2020 DATE inflation priced at 13% PERCENT and you're looking at a central bank pricing in 230 CARDINAL basis points of heights even that can't save starting this is a dollar As well as an energy crisis and economic vortex above Europe LOC and the United Kingdom GPE find themselves in oil whether you're gonna build a floor get royalty to the front door that's what they say is Royal Highness ORG prince of dollars is Production saves all Danny. Minutes I'm gonna be pretty quick here with this equity check because I think what you're showing there it's what's moving these markets it's the deterioration in the euro in a pounds Moving equities we are now seeing some pre substantial losses here down to tense of one% ORG for this feature session. Yeah I didn't take long to kill off the summer of love and use above three% of course on seating the technology rally to the German NORP Parish NORP she's searching above โ‚ฌ 700 MONEY a mega After the first ORDINAL time as Marcus NORP panic quite literally panic over the country's dependence on Russian NORP energy supplies the chance that as we just turn a dollar Schultz is in Canada GPE part of the push to find the alternative resources to gas emphasizing that his government Working hard to end the dependence on rushing gas. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible Never such an infrastructure has been built in Germany GPE and that is short time. Easing Processes ORG because of the difficulty that that Germany GPE is facing to make sure that we can move through regulatory hurdles more quickly is something we're willing to do but there needs to be a business case it needs to make sense Let's get to our correspondent Inberlin PERSON it is Burger Yan Bergert PERSON the scale of the crisis is laid by in the market in terms of energy prices electricity prices how palpable is it at home in Germany GPE where you are how real Is the energy crisis? Well I think at the moment people are just sort of getting by I mean the people are cutting back a little bit on their own consumption also actually with lightening with heatening up the the water basically But really people haven't yet hit the the real effect it can have if gas is going to be cut further back so that we will have to see may the government Working GPE really hard to make sure that during the winter time people basically can still heat their homes and that industry at the same time can continue to produce but for that they really need to stock up They are they are their gas storage and and they also need to make some other changes and and in order to fill the gaps so therefore there are for example looking at keeping nuclear plants working but really when we talk to the government they say maybe we're gonna get through this winter DATE but really the next winter when the store just are then really empty That will be a problem A burger, you know, in terms of the government reaction here. You're talking about, you know, dealing with industry but government reaction, politics when it comes to dealing with people who are not gonna be pork 'cuz they're paying more for Potentially dealing with people who are having rolling blackouts what is fiscal policy going to do when it comes to addressing these sorts of issues That's a very good question. So far the finance minister Linda PERSON is saying we can do this all without actually losing the constitutional deathbreak and actually keeping to the strict limit Of keeping a debt under control but really one has to see what this going to happen when really during the winter people will feel the extra cost in their bill and all with this late lava so therefore we have to How was the discussion is going? I think, you know, a lint not also doesn't want to be seen as moving too quickly into a further expansionary policies. So, therefore that he is holding up but the pressure is clearly building up because the government is also currently thinking of another package of measures. Really we do wonder how is this is going to be financed In terms of
Also currently thinking of another package of measures. So really we do wonder how is this is going to be financed? In terms of energy rationing that's part of the debate nuclear as part of the debate coal reigniting coal are all on the table what is the Toxic ORG policy Chancellor to pursue Lit king survive. The thing is it's it has to be a mixture of everything. I mean, they they need on the one hand, they need to make sure what I said before that the energy supply is sort of maintenance and that the economy continues to run. So, that Crucial in order to for the government and for the mood in Germany GPE not to switch so there is already now a risk and we do see if people becoming a frustrated windshaws is going especially to eastern Germany GPE there are already some kind of unrest or at least protests And that I'm also his own party is going to be continue to back in because once he is losing popular His own party will also increase pressure and then In this three CARDINAL party coalition will become more difficult Alright Burgutt thank you very much Bloomberg PERSON 's Burnett Burgutt Yenen PERSON throughout the morning TIME helping us with this story let's get into it more fun a bowl head of commodities at S and P Dow Jones ORG indeceased joints now and and Fiona PERSON burget there The political story and I love what you write in your notes that natural gas now rivals oil as the commodity shaping geopolitics given the pressure that politicians are feeling with this crisis Folding WORK_OF_ART . Are you seeing mistakes being made with how we're addressing the energy crisis right now? I think we're, you know, if you're a politician today DATE , if you're an energy minister today DATE , you probably got one of the toughest jobs going around and it's certainly One that that I'd like to take on your as as you've been talking about this morning you know Germany GPE has built up if we use Germany GPE as an example has built up dependency on Russia GPE over decades DATE and is now trying to switch that within a matter of months DATE and some of the alternatives Have over the short or the medium term I relatively unpalatable be that coal or a Tommy Kennedy PERSON so they've got a really tough gig Fiona PERSON always good to get you on this show so here we are record prices 1 year DATE forward in France GPE and Germany GPE everybody saying oh it it's getting worse but have we even begun to extrapulate where Russia GPE switches off the tabs Before the end of the year DATE . Well, Russia GPE has weaponized energy. They still have the option to to Genuinely extra Reopen the real weaponization of oil and gas before the sanctions kick in at Christmas DATE . I think history would tell us that markets rarely price in the worst case scenario. So, that is something certainly to consider. Now, you know, we have seen them turn off the taps on and off. We'd see that they're turning off North Streams LOC to again for At the end of the month DATE . But are you maybe the market is not at yet pricing you know a worst case scenario? Fiona PERSON , what's it gonna take for us to price that worst case scenario? What's the catalyst going to be? I think the catalyst will unfortunately be the action which is the cutting off your while while there is still some gas flowing while Europe LOC is still buying some Russian NORP oil you know mark it participants have some pope that We'll get through this winter DATE . I now becoming increasingly concerned about next winter DATE and the winter after that and I think that that may be the catalyst when that expectation that this is not a short-term event becomes more prevalent in the market. Fiona PERSON I'm furiously looking up my ticker for cold You know if I take my mind back to the last cop
So put us again in a in a really difficult position Verna GPE you know I I'm thinking about the volatility we've seen it in trading really a cross commodities be it be it oil be it the energy story and the fact that it's happening in August DATE the summer DATE Everybody's ORG away Happens PERSON when everyone gets back to their desks Fiona PERSON what does trading look like after the summer DATE ? We've definitely seen the oil market you know in in Anything GPE increase in volatility and I think some of that comes from the fact that trading volumes are low. I think trading volumes are low though not just because all of those all traders are in the south of France GPE or the Hamptons. I think it's because there's general uncertainty about where prices are going. And that sort of con Between, yeah, we do have still a very tight global oil market. But that's against the backdrop of, you know, high US dollar, increasing interest rates, and growing concern about about economic slowdown. So, I'm not sure even when those all traders come back Holidays whether that In these markets will pick back up Come on Fiona night they're all traded from Laval Rouge ORG eh in the south of France GPE they have they haven't stopped trading ehm they just have another large glass of eh whatever does it get through the vault speaking of which Extreme volatility there's a disconnect between the futures and the physical secretary general tells me it's mighty tight I love it there's just a sketch of freenia Not in my mind but in the oil market. So, High disconnected are the futures to the physical tightness. Look I always think futures markets do a good job of representing what's happening in the physical market I think they can be short periods Time ORG where maybe there is a slight disconnect but as I said I think the mark the oil market today DATE the oil drivities market today DATE is is telling us that there's massive uncertainty and that there is no yet no consensus around your what's happening in terms of tight supply versus how much demand I'm off. So, I think the markets are doing their job. And Hey Facebook Do you think is right do you think ABS is flying not quite about schizophre Is that a smoke screen for him to cut to hit to make room for a ram? Do you think that's what he's doing? Kite flying? I mean he he certainly talking you don't book and you know I know it's important to note that that OPAC ORG is not currently meeting it's target production so I'm not sure at the end of the day DATE even if there was an announcement of a cut what that would actually mean for the physical market it may mean we don't see Much changed because they're already, you know, not reaching their current targets. Thank you very much. Punch in a line though if you wanna bowl head of commodities and S and P by Jones PERSON . Coming up in the show with Danny PERSON and myself Brace, Brace, Brace ORG , the PMIs are heading the slade in just under 20 minutes TIME . A perfect storm. Rocketing inflation, slowing growth, gathering pace Another quarter CARDINAL of one% ORG this Tuesday DATE morning TIME on Bloomberg GPE . China GPE 's appetite for energy is enormous. The country consumes about a
China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. China GPE is the world's largest greenhouse gasimater. There is no way to tackle climate change unless China GPE reduces its emissions to NZ GPE . The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hump All this has led the world's biggest polluter to take steps towards a radical transformation. Are we in some sort of calculation fears moment people are talking about that all day DATE yesterday DATE It's take break your appointment screening in Dubai GPE Danny Burger PERSON alongside me in London GPE let's get a business flash headlines from around the world Judith Sally's PERSON with us in Singapore GPE . Matt PERSON I see you on Moscato PRODUCT his long time friend former Twitter PERSON CEO Jack Dorsey PERSON and his legal battle with the social media giant Mask PERSON is seeking to collect documents and data to show that Twitter PRODUCT understated how It's customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of the expedited trial in October DATE . Forward is cutting 3000 CARDINAL jobs this week DATE to fund its shift towards electric vehicles. The cuts will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . CEO Jim Farley PERSON has repeatedly said the company has Workers Ford ORG wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year DATE by 2026 DATE . Zoom shares feeling US GPE late trade after it projected sales and profit for the current quarter DATE below estimates it says annual DATE sales growing to about $four MONEY . 4 billion CARDINAL down from its projection in May DATE of as much as four CARDINAL . 55 billion zooms pandemic boom has called considerably as officers reopen and competition in From Microsoft Teams FAC and that is your Bloomberg GPE business flash Danny. George PERSON thanks so much Julie PERSON and Sally PERSON there in Singapore GPE and we got a slew of European NORP PMIs this morning for August DATE they're gonna provide more insight into the challenges facing the euro area economy throwing energy cost And rest for more we're joined now by David Powell PERSON senior girl area economist for Bloomberg Economics David ORG how should we be viewing the PMI ORG 's we get this morning TIME considering that there's a big odd for more deterioration for the months DATE coming How much they slide from the readings we saw in July DATE so in July DATE the number for the the composite number was already in negative territory signaling that the economy was contracting and that was led by difficulty in the manufacturing sector so we Did that get a lot worse in August DATE and that will give us a sense of of what businesses are trying to contend with right now as those energy prices sore and is the threat of Russia GPE cutting off the gas moons. David the debate is is where we are with inflation. If we look at the energy narrative and energy inflation is up some 40 CARDINAL year% on year DATE . I think Valerie Queen PERSON of Chance has a chart on that which we can have a look at. It is becoming on board it is becoming on tethered you can no longer just say it's AA temporary drift hire Yeah and the problem is it's not just energies so we're seeing higher prices price increase
A temporary drift hire Yeah and the problem is it's not just energy so we're seeing higher prices or price increases in the cost of food which is also a result of the war in Ukraine GPE and we're also seeing that broadening out to most of the goods in the basket of the basket That's used to calculate inflation, the goods and the services. So essentially it's becoming more widespread. And not only are we worried about the actual inflation numbers but also we're seeing signs of life in in waging creases and that that is a signal of further inflation down When when it comes to sort of inflation expectations getting in French LANGUAGE I wonder what fiscal policy does to exacerbate this or make this better Bloomberg PERSON has a story a scoop of What happens if if there are more government subsidies to to help folks you know pay out for what's gonna be much more expensive Will the economy is already operating at capacity I'm in the UK GPE Which is very very tight unemployment at a very low level and that's also the case of urine unemployments at a 40 year low. And so essentially if there were more stimulus from the government that would stoke inflationary pressures because because Is already operating at capacity. I think the the the best way to to think about the physical spending is to target those most in needs. So you don't want kind of just broad giveaways to everyone. But the most vulnerable in society. Which is really what actually sent for banks have been saying ECB ORG 's been saying we need to target these subsidies so those most in need get But we we can't have this huge stimulus package that's more broad based. David thank you so much David Powell PERSON setting the store for the PMIs which will hit the tape shortly we'll bring that to you our senior euro area economist four CARDINAL Bloomberg PERSON economics coming up Under pressure. Hey use fail to save the point we talk FX ORG on Bloomberg PERSON . Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semiconductor industry overall Estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that need. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG .
It's Bloomberg Daybreak PERSON Have a look at this 2 years DATE we've show Couple of times is this week Danny the pine's still getting crushed on the crosses and on the outright against the triumphant dollar this is what the mark of things is gonna happen to 2 year use so we've got this move and by the way 231 CARDINAL basis points of hikes are priced in for by May of next year DATE and still the point And this FX ORG narrative Danny is pervasive isn't it this morning TIME ? Hey it certainly is it leads to a lot of people saying quite chickly that you know pound and euro trading like an EM currency that even the rate spread isn't helping to lift them as 18% PERCENT inflation in the UK GPE is what they're predicting if we get a gas crisis so this is inflation being priced into those yields man is what ECB what can a beer we do to curb inflation if it's coming from a gas crisis? There's a lovely line in the piece by Jordan Rochester PERSON . I mean, he'll get more, he'll get more Twitter PERSON followers than both of us put together in one CARDINAL stick this morning TIME but the bottom line for him is that the FX ORG market FX ORG is underpricing he surprised that it's not a more aggressive slump in the or there it is on the cross as Da Yep you're a falling virtually against everything Rochester PERSON saying that look we've been focusing too much perhaps on that towel narrative but manus markets certainly alive and awake to the issue when it comes to European NORP recession more market Text this is blue bird. Nurturing also can come from men and it's one of the qualities I guess that you found in your mentors that also pushed you up. Do we need even more monitoring post pandemic? Is there is the way that we, you know, talk with employees going to change? I think talent becomes a single Different shape of a successful entity versus an answer So you gotta do everything possible to hire Put your arms around talent. Show them that they have a upward mobility and can make even more money and that's the only reason people come to work. I think post pandemic. I have to worry about me as a person. I have to worry about my family. I wanna worry about my well being. My mental health. So we've got to start Which means that we have to engage with that head art and hands not just head and hands the heart has been engaged so we have to be so more empathy show show that we share that your The community, the members of the family, and all of those have to come into consideration as we
Citizen to the community the members of a family and all of those have to come into consideration as we help an executive employee Community ORG and the family. Hey Facebook Blueberries. Bloomberg PERSON technology. Good morning TIME welcome to Bloomberg Market so you're reply manner Edwards ORG live in London Mark ORG have more our markets live managing editor joins us from Singapore GPE to take us through all of the market action this hour TIME the cash trade is just less than an hour TIME away so here Top headlines. The next test euro area PM eyes Global stocks continue that move lower after equities saw their worst route in 2 months DATE European NORP and US GPE features dip plus Opec on alert crew prices pair losses after Warns the alliance could cut production to curb recent price drops Here in London GPE . Good morning TIME . What are the Saying LOC to you. Good morning I know what it feels very similar to the last couple of sessions and I'm afraid that's not particularly good news we've seen that general kind of risk a version again we're seeing concern about the European NORP crisis we're seeing this idea of generally higher yields over the last 24 hours TIME it's not really a changing theme unfortunately it's a negative theme though It isn't negative theme. Let's dive into some of the detail there. We're just under an hour TIME away from the starts of cash equities trading in Europe LOC and it doesn't seem as if we've got an end to that Perhaps expected to fair a little worse which might be a surprise given we are seeing that rebounding oil prices coming through a little 97 oh two is when we trade on Brent's ORG in terms of where we were yesterday DATE we dropped more than two% ORG on the German NORP Benchmark the dacks of course we drop more than two% ORG on the Nasdaq and the S and P so there was broad based weakness during yesterday DATE 's session this is the future's picture for Europe LOC then for this morning US GPE features also looking flat to negative Hiring GPE . The European NORP energy story and all of that adding up to something that looks pretty negative than Mark PERSON . What does it look like on the GMM ORG ? Well, actually all those US GPE features, they were in the green most of the morning. There's only a couple of hours ago. They suddenly went red but we are seeing that general theme of risk conversion across the board. Nothing too extreme. Probably most interesting is the FX ORG collar. That's where we're really the attention is this week DATE with the Euro PERSON dollar sloping blow party. It's a sterling in free falls. Well, a general dollar strength. The Bloomberg PERSON dollar Getting close that record high again and we're seeing that very much in the theme across the board today DATE . And that underlying theme is very valid. There's a chance in fact that I could accelerate at some Soon. And of course going into that is the idea of higher yields across the board. Lower stocks, general risk conversion. Commodities been a bit more mixed. Oil has been today DATE . Doesn't show up because I had such volatility earlier on this year DATE that A really big move to move to command to this screen but oil's a little bit higher and that's providing another little kind of buffer for a commodities generally. Okay so a bit more mix on the corners he's front Mark PERSON let's talk about the markets then in 3 minutes TIME and I want More than two% ORG on some of these major markets but there there's been talk chatter in Hong Kong GPE about maybe tweaking some of the quarantine rules that doesn't seem to be lifting stocks. All that much. What do you think it is that's weighing on the Asia LOC sentiment? Is it all Chinese NORP growth. What's interesting is there's not just one CARDINAL single drivers. There's just this pervading negativity out there. I think probably the biggest Issue four Market.
What's interesting is there's not just one CARDINAL single drivers. There's just this pervading negativity out there. I think probably the biggest You four CARDINAL markets at the moment is the European NORP energy crisis and that still feels underpriced in European NORP assets particularly European NORP stocks but that is one CARDINAL kind of market that's dragged down and that is of course European NORP Is one CARDINAL of the kind of three CARDINAL big pillars of the world economy. So, that's a really big issue. Then, the US GPE , people are specifically worried about the event risk of Jackson Hole GPE . It's a little bit more new The medium term as you know I'm very firmly in the kind of bearish camp for stocks over the next 6 months DATE over the next year DATE but I don't have a particularly you know worry about the next week but I think because of Jackson Hall FAC people are trading that medium term negativity more aggressively and then of course when you come to China GPE not only has the data Terrible I think that's not the surprising bit it's the fact that that the PBSC and the government all their measures have failed to stimulate any sort of rebound and Anna say this Who is in the camp of expecting quite negative Chinese NORP growth this year DATE but I thought that accidents would be propped up by the policy moves and that is just Happened? And what you call the underpricing of the energy risks at Maybe this is underpricing Effects. Below parity. It dropped back down below that to get today DATE . Oh spot 9921 is where we trade. But you think actually there's more room to move on stocks. So I I look I'm I'm very embarrassed you're a star I still think Giro PERSON has much more downside and I have a lot of symptoms in the mirror of you and look I'm a macro guy which means Think of Barnes and FX ORG before I kind of go to stock markets as my default but I think from here that it's it's the risk reward idea the euro has a lot more downside but they're gonna be really big squeezes. We know that the market is generally very long dollars. They are short euros. It's a consensus Of you and also the yield story here is more complicated cuz what we're facing is a major inflation crisis and yes it's a supply site inflation problem Two CARDINAL aggressively but they still need to stop that inflation feed into inflation expectations and changing the game so ultimately we're gonna have squeezes where yield suddenly go higher that makes the euro move more complicated where it's just unembiguously bad for European NORP stocks over the next 6 months DATE Okay and you're pretty glimmy about socks more generally I was reading your macro view very depressing as it was I mean if for anybody longest stocks it might be a depressing read Mark PERSON but I wanted to mention that the Stanford University ORG economics John Taylor PERSON says there's still time to nip inflation in the bud his words and to avoid a recession you'd very much don't see it that way. So he said we need to get rates to five% which remember is about 100 CARDINAL basis points above what we're pricing in the market Already scared the market. So, I think if we get his policy action, we'll get a real big collapse in stocks anyway and I do think it will cause probably a session but maybe a softer one if we're active proactive Okay Mark PERSON thanks for those thoughts remember you can get up to date to analysis from Mark PERSON and the rest of the markets live team MLIVO is the function to use on your terminal let us get a Bloom Bay first wave Morning Alice FAC how do you Says Opec and his allies may be forced to cut output as the future market has become increasingly disconnected from fundamentals. Prince Abdulazi GPE 's been Solomon told Bloomberg PERSON harmful volatility is disturbing the basic functions of the market. Opec ORG plus meets next month DATE to consider production target Justin Trudeau PERSON says Canada GPE would be willing to consider easing the regulatory burden on new gas export facilities to Europe LOC but warns the business case must be made first ORDINAL speaking at a Conference with Germany GPE 's oh Love Schultz a Canadian PM WORK_OF_ART said the challenge is that any new gas terminals in Canada GPE 's eastern shore would be far from its western gas fields The US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE . This after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote Dartedly crime. Ukraine GPE is preparing to celebrate independence day on Wednesday DATE which also marks 6 months DATE since Russia GPE 's invasion. British Airways ORG says it's wrapping about 5000 return flights in the coming months DATE that's after cancelling about 13% PERCENT of its summer DATE schedule due to a staffing shortage and extended capacity curbs at London Heathrow FAC Hub BA says passengers who've been affected
Cancelling about 13% PERCENT of its summer DATE scheduled due to a staffing shortage and extended capacity curves at its London Heathrow ORG hub BA ORG says passengers who've been affected can rebook alternative flights or seat refunds. And Doctor Anthony Fauci PERSON who became a household name during the pandemic is to step down at the end of the year DATE . The top US GPE infectious disease expert has run the national institute ORG And infectious diseases since 1984 DATE . Advising seven CARDINAL pace seven CARDINAL presidents on every major infectious disease outbreaks since the HIV crisis. The 81 year old DATE says he is leaving to pursue the next chapter of his career. Global news 24 hours TIME a day on air no Bloomberg PERSON quick take pub by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries this is Bloomberg Anna Alice PERSON thanks very much Alice Atkins PERSON here in London GPE Up on the program we'll get back to the energy story more on that oil story and facts our Saudi Arabia GPE warns volatility in the oil market may force opac plus to cut output we will get the latest on energy plus China GPE Up next though Euro woes the common currency fell to a new two decade DATE low we haven't been as low as 2002 and could suffer even more we will Strategy. If you have any questions, you want us to put to our guests, please do get in touch. IB plus TV goes to function to do that on your blue bag. This is bling bag. When I started I had no idea it was gonna turn into this. Empire. I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand It has been mostly a dollar story Europe LOC hasn't under performed as much as I think it should I think the the FX ORG market is totally missed pricing the situation you're the situation is a complete rethink of the economic model in the euros zone and I'm just it is struggle it's strange for all of us to see the euro selling off so slowly I In the next few months DATE John Rochester PERSON there in the mirror is G 10 CARDINAL FX ORG strategist on the perfect storm that's engulfing the euro at the moment the Euro Strategist say the drop is just the beginning of a deeper descent for the currency we heard Jordan PERSON making that point just there let's get another perspective Chris Turner PERSON joins us IG
Strategist say the drop is just the beginning of a deeper descent for the currency we heard Jordan PERSON making that point just there let's get another perspective Chris Turner PERSON joins us I and G head of FX ORG strategy at Chris PERSON good morning TIME to you We have to ask how low does it go? We are now back below parity. We heard Jordan giving his view there. What are your thoughts on how how low it goes and how quickly I suppose Points. Yeah, I think right at the moment now DATE , we're really sort of in this sort of male strom really of this sort of energy crisis in Europe LOC and I think it's Jordan PERSON mentioned as well so there's reassessment of European NORP Lot of particularly the German NORP business model importing cheap energy taking advantage of globalization adding value and exporting products around the world. We've seen the German NORP trade surplus so it'll be wiped out which is you know a full reassessment of that European NORP kind of business model. In light of that it's unsurprising to see kinda GPE year down here at Party ORG and I wouldn't disagree with the kind of levels that kinda Jordan GPE mentioned there so I think one of the key things we're telling customers is that if you see your daughter and you think it looks super But actually the fair value of Euro has been damaged by this energy crisis and maybe you can't rule out it moving, you know, another 10 CARDINAL big figures, lowest from here. Yeah, and by that reassessment of the growth model that you just tried, Chris PERSON . Jumping. Yeah Chris PERSON one of the things I'm curious about is you just mentioned that at the end it's about the idea we could suddenly go to the 10 CARDINAL big figure See me this year DATE has been uptick in volatility. Trends going further, moves going slightly further. I guess what I'm curious about is given the positioning in dollar. Is a bearish year of you? Is it still best to play it versus the Or is there are we approaching the time when you wanna start playing up versus some of the currency? Hey we're just hearing you in the early a segment mark being sort of very negative in terms of the the global growth environment and kinda exit that equities so yeah I'd say probably still against the dill I think you'd really sort of back with Jackson Holland GPE Friday DATE and I think we are in a slate stage of a kind of US GPE business cycle. Traditionally so positive for the dollar against particularly the activity currencies as well and given what's going on in Europe LOC as well I think You play week a year I think versus a dollar given AA quite a difficult trading environment over the next 3 to 6 months DATE People have been talking about how surging yields in the Eurosone ORG . I have failed to show up currencies. I mean, I know Mark PERSON 's got some thoughts on real deals which will get to you later and that The whole explanation. Don't necessarily understand yet how to trade this. They don't know whether to, you know, be buying bonds because of risk of version or selling bonds cuz you're concerned about what physical authorities might do, how much money they might be giving away. There anything that can sure up the euro in the face of these challenges Yeah you would have thought the so I suppose ECB and we've heard the comments from Isbell ORG last week DATE that this year dollar client decline is unwelcome it's an energy price shock it's a dollar shock really impacting the years DATE in terms of trade so negative income shock which is Clearly so weighing on the euro here and to try and get the euro higher from here I mean obviously it seems I likely that the gas store is gonna turn around or the energy crisis is gonna resolve itself very quickly you'd have to expect a far more aggressive In terms of what they're prepared to do with canopy rates but I think we at ING think that we will just have 150 CARDINAL basis point further rate height from the east to be in September DATE then that will be it for the cycle so the market is pricing about 125 we think they're only gonna deliver 50 and you can probably conclude that's not a particularly a positive outlet for the year end DATE in that environment Chris PERSON we're picking on the euro quite significantly this morning TIME but of course there's another basket case currently in the region and that is the pound. You're a sterling. Which side of the range does it break first ORDINAL ? We're right in the middle of the 1 year range. 82 Seven CARDINAL . We're right in the middle of that right now. Which side does it break first ORDINAL ? I've got us a slightly a view that's against the market here where I think Sterling ORG can actually hold up better than most people think. Obviously, quite negative grace environment. You know, Entering several quarters CARDINAL of recession with the Bank of England ORG kinda tightening so very kinda GPE inverted curves coming up but I think guilt investors and what they're gonna do with their H ratios particularly when you've got short end rates going well above two% Bank ORG finger being quite aggressive. I think it's gonna be difficult for them to have high effects head ratios and they guilt holding. So I think actually the bond portfolio manager
You're being quite aggressive. I think it's gonna be difficult for them to have high effects ratios and they're guilt holding. So I think actually the bond portfolio managers reducing their head ratios on guilt could be one CARDINAL thing that prevents a pound from from your sterling for example breaking well up of 85 CARDINAL . So I think perhaps we do go back down to Or so. Okay and how much does that rely on the Bank of England ORG being able to deliver more rate hikes because there doesn't be a nervousness as some quarters that their ability to do that might be limited. Yeah. Very much so I'd say that's the key thing you know there'd be anything kind of affecting the pandemic. Yeah. Yes so I think definitely for the bank of England they will have to deliver probably another 50 CARDINAL basis points in September DATE and you know so much is pricing to next year DATE rates at three and a half percent DATE we think they can get nowhere near there but probably they'll talk hawkishly as a shirt at this stage and the cycle with the inflation hump into the rest of this year DATE and I think as I say I think Keep the pound relatively support against a euro but obviously the dollar will be king in the current environment. Okay, we'll talk about that more in a moment. Chris PERSON , thanks very much. Christina, I and she's head of FX ORG strategy stays with us. Coming up will be taking you through the key events in the diary for today DATE including day two DATE Daughter ORG 's trip to Canada GPE the German NORP chancellor was there talking energy of course that's up It's just been back. Economic policy symposium Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it And our point was Wyoming GPE can beat that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this and why I'm This trend is coming. It's not going to stop. Is more of a small town that's growing into without a call that cryptocurrency version of Silicon Valley LOC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. Welcome back to Binberg Market Europe a week DATE out for 40 minutes TIME still to go until the start of cash out when he's trading this is what the European NORP future's picture looks like right now She's deteriorated quite a bit. I should say US GPE features now Nasa ORG features down half a percent PERCENT emails down three tenths of a percent CARDINAL now this morning TIME we'll have PMI ORG 's coming through in
Half a percent Three tenths of a percent QUANTITY . Now this morning TIME we'll have PMI ORG 's coming through in Europe LOC . So let's get a rundown of what to expect. Beginning with France GPE and Germany GPE at 8:30 AM TIME : at London GPE time. Followed by the wider euros zone PMI ORG number. That's Continues with In Milan GPE at 3 PM TIME after the US GPE markets open we'll get new house sales data from the United States GPE painting a clearer picture perhaps of the state of the US GPE economy in the last month DATE and the effect of higher interest rates on mortgages of course else In the US GPE primaries elections in Florida GPE and in New York GPE are taking place where two CARDINAL long serving democratic lawmakers Jerry Nabla PERSON and Carolyn Maloney PERSON face off in Manhattan GPE 's region Later tonight TIME we'll hear from Minneapolis Fed ORG President Neil Kashkari PERSON as he speaks at a Q&A session at the Warton Minnesota Alumni Club FAC finally German NORP chancellor Olaf Will PERSON share a platform once again with the Canadian NORP president just in Trudeau PERSON at the Canadian NORP Prime Minister sorry Justin Trudeau PERSON on day two DATE of his 3 day DATE visit the focuses energy of course with Looking to diverseify Germany GPE 's energy supply. Mark, this seems to be a lot going on. I seem to have read a lot of words at least. There's a lot of data and we're working our way towards the Jackson Hall FAC . What's gonna be your focus? That there is a lot going on. It's actually a much more exciting day than people think. We're not just drifting to Jackson Hall FAC . Markets are getting very interesting again. I think you know, summer is ended a little bit early. Those years and PMIs, absolutely in focus, given the nega Around Europe LOC . Care about because he was such a dove and he's kinda switched so aggressively. So, maybe they are the two CARDINAL highlights. Home sales as well, they're also catches my eye. Okay yeah absolutely an arising based environment let's get back to Chris Turner PERSON bring him back into the conversation I and she's had a rare fake strategy and Chris PERSON we mentioned strong The weakness in the euro where do you think the dollar heads through all of these challenges this week DATE are we just set course for Yeah well it's all ready you know very strong and I think it probably stays pretty well supported near the highs I think one of the important running to Jackson PERSON High I think one of the important takeaways from last week's DATE fed ORG minutes TIME that released from the July DATE F oneC meeting was they kinda welcome the strong dollar in terms of in helping to suppress imported inflation so no signs as yet Strong dollar was cool to get any problem to the fed ORG . They cited wider, yield differentials as a fact to drive in kind of year a dollar lower. So, you know, I think that kinda combination as Mark PERSON mentioned Neil Caskari PERSON now Super Hawk. I think yeah, I think the dollar will stay pretty much near. It's kinda It's quite interesting the type of price actually we're seeing right Friday DATE it wasn't a particularly busy day for like events but the dollar just stayed bid and you're done just stayed up first I think it is. Yeah. Yeah. Chris PERSON , in a strong dollar environment, higher yields, lower stocks, it does not sound very friendly for emerging market currencies, which is the most vulnerable ones. Yeah and as usual the Reminbi PERSON can set the tone for emerging market currencies in in general not only in Asia LOC but also the commodity As well. That's a very much gonna trade off of kind of Chinese NORP growth prospects. So, if we start with a remainder, I mean, this week DATE , dollar CNH ORG . So, the offshore remember, it's traded up through 684 CARDINAL which was a big level of peak we saw earlier in the year DATE I think people were That China GPE is allowing kind of evaluation that we saw in April DATE or May DATE which took emerging market currency in general a week across the board so I think and a big surprise yesterday dollar career trading up to like 13 30 DATE even though the the central bank ORG would like I think Some of the big commodity exporters and maybe like places like Chili PERSON as well which is really committed to spending a big chunk of its effects reserves to support the pacer until the end of That's gonna be quite a difficult challenge for them. Hmm so so they're quite vulnerable are they given the the rising dollar environment and the commitments they've made? Any other emerging markets in that basket then Chris PERSON ? Let's say like the Rams PERSON as well. There's real so benchmark for emerging market kind of currents is in general and can the week of Chinese NORP growth prospects. So we've seen that the Really kind of flying around and you know it's briefly it was trading under 16 only a few weeks ago DATE
And can the week DATE of Chinese NORP gross prospects so we've seen that the round really kind of flying around and you know it's briefly it was trading under 16 only a few weeks ago DATE it's now over kinda 17 and you know Could easily trade so we're 18 CARDINAL over the next 2 or 3 weeks DATE if the dollar just stays strong as we think. Chris PERSON we've all we always like picking on the run in a strong dollar high yield environment I guess I'm gonna switch back to G 10 for one CARDINAL final one that's very binary at the moment the yen dollar yen MONEY was the big trade of the first ORDINAL part of this year DATE now I know People are again fighting the idea of a short yen and they're kinda saying in an environment where stocks are in a week DATE we're heading towards a recession yen won't fall much further what's your view is the dollar yen trade still good? Yeah I think it probably is I mean terms of trade I think as you mentioned earlier like gas prices really sort of dominating in with I'm spending every day DATE looking what's happening to the terms of trade a place like the EuroZone ORG and Japan GPE that continuing to decline so With a strong dollar and this terms of trade story really dominating effects at the moment Very difficult to try and play against her even if you say you might try and pick out a long yen on the cross for kind of to play the we correct environment but overall I think Dolly and stays bit and yeah we could move up to 140 CARDINAL . Okay so Dollyanne PERSON moved to the dollar move and a bit of yen weakness maybe. Chris PERSON thanks very much. Thanks for joining us. This Morning Kristana WORK_OF_ART . Coming up on the program a Chinese NORP banks are employing unusual practices to inflate their loan volumes will delve into this fascinating story about what the Chinese NORP data on the level of lending really needs we'll get some analysis this is bling back Apple ORG has identified it's next big business bringing advertisements to more parts of your iPhone ORG . Today DATE Apple ORG pushes ads in three CARDINAL places the App Store Apple News ORG and the Stocks app In the news in stocks apps Apple ORG shows display advertisements That means that third ORDINAL party companies like car dealerships or mortgage lenders can showcase their advertisements just like they can on a website. On the App Store FAC , the situation is different. There, Apple ORG has search ads. This allows developers to buy their way and destroying a pire on search results. For instance, an app store developer can bid for the term car racing or basketball. So, their apps would surface above competing apps in the list of results. Apples The ads is a little ironic given that it's ATT ORG or app tracking transparency privacy feature limits the ability for meta snap and even smaller developers to generate as much revenue as possible for advertising that's because the feature allows users to choose if they want their data collected and tracked across third ORDINAL party apps and website Still apples hoping to expand its own ads business and is planning to add search ads to its maps app other areas where ads could eventually appear or an Apple ORG books and Apple ORG podcasts along maybe 1 day DATE with an ad supported tier of Apple TV Plus ORG to compete with new offerings from Netflix GPE and other streaming video This is power on.
Welcome back to Bloomberg Market Europe half an hour TIME until the start of cash equity is trading for this Tuesday morning TIME here are your top stories below parity reception fairs and winter DATE warnings push Global stocks continue their move lower after equities saw their worst route in 2 months DATE European NORP and US GPE future's dip. Plus opac on alert crude prices pear losses after Saudi Arabia's GPE energy minister warns the alliance could cut production to curb recent price drops. Welcome back to the program everybody then half an hour as I said until the start of equity trading and this is the deteriorating future's picture actually but it's not just a European NORP story we've got US GPE features also looking a little bit weaker which is interesting just over the last half hour TIME this is Mark PERSON said they were at fluctuating through the Asian NORP session so we're weaker I'm thinking about the fed ORG and tied to policy About the European NORP growth challenges around energy, perhaps. With that in mind, Mark PERSON . I want to see what's caught your eye. I know you've been focused on on yields in Europe LOC and the extent to which they reward investors. When you take into account how Inflation is. Yeah very much so so normally we look at kind of a real yield measures as derived by the market inflation adjusted returns but I just wanna do a more simple mature today DATE which is German NORP to your yields minus headlines CPI German LANGUAGE CPI year and year DATE rate and you can see that it is collapsed to completely unprecedented The data we have here and he goes back to about 1990 but I've gone back to 1982 DATE here used a 30 year DATE window and you can see we've never Like this over the past year DATE . And this is obviously what's been weighing on the year DATE . You're essentially earning deeply negative real yields. So you're basically effectively losing money in real terms to buy German NORP bonds. And that's very very dramatically so at the moment. And I think this goes back to the idea that Jordan Rochester PERSON said from the mirror about the idea that Europe LOC Potentially much more downside over the year ahead DATE . My one CARDINAL catches of course that we do have an inflation problem. We're gonna have various yield spikes at some points in the year ahead DATE . Even if the ECB council state hiking path and that means that if the euros here with yields this negative, if we Little PERSON baits and reel yields we might see some painful short squeezes and that goes back to my point that while I'm very bearish you're I think risk reward volatility adjusted it'll be a hard play whereas European NORP stocks just probably have downside over the next year DATE . Mom maybe we need a little bit of distance from the story to make this kind of assessment but the subtitle on your on your chart there says we'll be easy be regret it's negative rate experiment are we suggesting is there I mean maybe yes being negative for too long or being loose policy for too long but what did inevitable that negative Talk PERSON us to this place I mean the pandemic and the post pandemic recovery and all the geo politics that we have is really what's driving inflation Well not not just what we saw from Central Banks ORG over decades DATE . No you're absolutely right and I think you know that's quite a newest discussion but I this is the environment of negative yields and one CARDINAL of the problems is is that we've enter Crisis Inflation PRODUCT crisis with companies in Europe LOC borrowing an exceptionally low rate and therefore we they don't have any resilience to any hike and rates and in clearly that makes them much more fragile. They do not avail of this period of growth in Europe LOC . They're not exciting growth but you know the the crisis was back here. Maybe the European NORP crisis For another couple of years DATE . But for all this period, you're a part of chance that it wasn't in crisis. It should've probably got out of negative rights. That would have made it system a little bit more robust. A little bit more resilient to the next downturn. And a little bit less painful now. But you're It is not the cause of the problem Okay. Mark, thanks for thoughts there. Germany GPE and it's low yield and negative real yield environment. Let's get to a business flash now. Some of the other corporate That we're covering today DATE and with an update here's Hi, Anna. Elon Mosque ORG has subpoenaed his long-time friend, former 20 CARDINAL CEO, Jack Dorsey PERSON in his legal battle with the social media giant. Mask is seeking to collect Undated
Ela Mask PERSON has subpoenaed his long time friend former 20 CARDINAL CEO Jack Dorsey PERSON in his legal battle with the social media giant mask is seeking to collect Understated GPE how much of its customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of the expedited trial in October DATE . Ford ORG is cutting 3000 CARDINAL jobs this week DATE to fund its shift towards electric vehicles. The cuts will come primarily in the US GPE with some positions also eliminated in Canada GPE and India GPE . See you Jim Farley PERSON has repeatedly The company has too many workers Ford ORG wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year DATE by 2026 DATE . And zoom shares fell in US GPE late trade after it projected sales and profit for the current quarter DATE below estimates it sees annual DATE sales growing to about $four MONEY . 4 billion CARDINAL down from its projection in May DATE of as much as four CARDINAL . 55 billion Zooms pandemic boom has cools considerably as officers reopen and competition intense fires from Microsoft ORG teams that's your Bloomberg GPE business splash Anna thanks very much Anna Satkins PERSON here in London GPE with a business Let's get what's going on in China GPE . Is back stopping troubled real estate firms with some 29 1 billion dollars MONEY worth of special loans that as Beijing GPE 's steps up support from main pillar of the Chinese NORP economy and that is of course real estate let's bring in a Bloomberg GPE Senior editor for China GPE . What's driving the these these policy moves then Well clearly there's AA very deep deep slump in the real estate market we're seeing 29 1 billion dollars MONEY being dulled out through the Chinese NORP palsy banks credit growth is you know last month DATE could hit could have hit a 5 year DATE low So, you know, that the banks are having problems finding lenders and and that the real estate developers are finding how real trouble completing projects as we've seen with mortgage boycotts across China GPE now. And what are the risks of this approach Jonas Well, look at financially, we're we're seeing an erosion margins and and you know, the banks are dealing with a cascade in in bad death surfacing from from an ongoing property crisis And and as they're also now cutting rates more broadly you also have other companies in China GPE who are clamoring for financing but but Chinese NORP banks are pretty conservative and financing small media signs from so they're struggling many firms are struggling under the lockdown to stay afloat Even much higher rates and it's certainly not good for the Chinese NORP economy but in the short and long term. Okay and Jonas PERSON I think we've we've got some really interesting reporting that links to this around the extent to which Chinese NORP banks are inflating their loan numbers. What more can you tell us on that? Yeah, I mean, that's an interesting development. The banks are caught in a real tight spot. As we discuss that the government is banging the dumps for them to land more and get the economy going while they're finding few companies willing to take on loans given the economic uncertainty bankers we have spoken to say there's a certain window dressing going on with lenders right now they're dolling out loans and then allowing these funds to be I'd be clients to deposit the loans back at the same rate other banks are buying from each other through short-term arrangements which is also pumping up volumes so in essence as we discussed 5 year DATE low in credit increase last month DATE could be even worse than than This official data show at least Jonah interesting story thanks very much bring back Jonas Bateman PERSON joining us there from Hong Kong GPE coming up on this program oil gains off to Sadi Arabia GPE said Opec ORG maybe fourth ORDINAL to come production more on that next He's been there.
China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . Energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. China GPE is the world's largest greenhouse gas center. There is no way to tackle climate change unless China GPE reduces its emissions to nine CARDINAL oh. The country's reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely harm her industry. All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show Your conversations. I uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . What is your basepace for Italy GPE in terms of what happens If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discretion about that then it'll indicate that they're on the way and I think once most important now we've learned from history on this learn from our experience is the more the fed ORG can commun Better off will be so that communication that stipulated about what the policy will be Is very important right now and I hope that that does that. John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what role I have financial conditions play and should the fed ORG be paying more attention to this or at least I loot to that fact in order to sort of bring down This is what needs to be done. This is what's worked in the past. This is how we can do it. The the more convincing it will be. I think that Markets don't like is uncertainty about what's gonna happen to us more uncertainty today I think that's one of the reasons why the markets went down but the the more that the indicate Where it needs to be gone. That's why these rules are so called tailor rule, whatever you wanna call it or advantageous cuz it says, hey, we need to move a little bit further and hopefully, that will cure the problem a more rapidly than people expect. John when you wrote about this in 1982 DATE flag the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a recession given perhaps from the policy errors before does that mean we're at a point where recession is going to be maybe I don't think it needs to be part of the cure what we we've experienced if we let inflation build up over time like it's in the 70s 7 years DATE of hiring placement. If we nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about they're right to worry about cuz they've seen in the past but the more that they're
This is what we need to do. This is good. Make the economy healthier. Grown even faster and I think that's what we should emphasize. This is better for job. Just as better for the economy. This is better. And also Mention PERSON the world economy we have inflation all over the place right Stamford University ORG , economics professor John Taylor PERSON . He of the Taylor PERSON all sighting, the Taylor PERSON rule, who was at the very first ORDINAL Jackson Hall Conference FAC , four decades DATE On what to expect at this year DATE 's meeting and thinking about weather we need to see a recessional wheelchair recession in the US GPE . Mark PERSON , I just wanna get your thoughts on what we're seeing on our effects right now. The Euro threatening to drop Territory PERSON you know we're already at 20 year DATE lows on the Euro at our colleague Valerie PERSON pointing out that we Seen another huge moving energy and gas prices upwards in the sense that we've not taken out yesterday DATE 's peaks I suppose these two CARDINAL these two CARDINAL factors are are related though because it is fear about energy in Europe LOC over the winter that has put down with pressure on the euro. Yeah, very much. It's been fear about that. I remember, energy prices have been ahead of the Euro Stories LAW . We don't necessarily need energy prices to go much further to increase that European NORP negativity. They just need energy prices to not come lower and it stays very negative for your one thing that's interesting. When we get really large moves Over like four, 5 days. You you rarely get the market then make a big move and then pause because what's happened is there's been a shifting positionings. The market dynamic is we either start breaking levels and really stretch all we get a rebound and I good example is the early July we fell from 1:04: 40 CARDINAL to parody in Euro dollar in the space of about six CARDINAL session And now we've come from 1:03 TIME : 60 CARDINAL back down to 99 CARDINAL a similar type move in in a in just over a week DATE I think now it we're not gonna be here in a couple of days DATE time where are they gonna really accelerate to the downside as we get a panic or we'll get a bounce into Jackson Hall FAC and so I think this is a really interesting Moment for your dollar over the short term. Okay we'll watch that shirt the short term performance then let's move on but stick with the theme of energy Saudi Arabia's GPE energy minister says Opec PERSON and it's allies maybe forced to cut output he says the future's market has become increasingly disconnected from funda Let's bring in our Middle East LOC energy reporter. Who's with us? Verity PERSON There she is. Let me ask you what this means then about the chances of Opec ORG plus cutting production because just recently we were asking about how much Opec Plus is going to increase production. Now we seem to be in a slightly different world according to the Saudis NORP . Yes, definitely. He said that there might be a chance of reducing production And of course everything but Saudi Arabia GPE says everybody pays a lot of attention to But all prices are still pretty high. I mean they're clean to $ 90 MONEY a barrel. Er but they've eved off the highs of ehm June DATE . And that's raised the question of whether Opec ORG will reduce a little bit further but for a long time Opex GPE quotas have been quite theoretical because a lot of those members haven't been able to keep up with those quoters And we know we've seen a lot of volatility as a result any sort of indications from Russia GPE or signs of global recession futures markets are definitely reacting to those Very good morning TIME . If physical markets are supposedly much better reflecting fundamentals, should we be paying much more attention to the the price of physicals or do we still use features as a guide? Perhaps but there have been plenty of disruptions on the physical side as well. I mean, recently, we had disruptions to pipeline from Kasak ORG stand. We had flows halted from the southern portion of the pipeline running from Russia GPE to We have plenty of wildcard factors which will affect the physicals market and also futures. Iran GPE is the big one that everybody's watching right now. Libya GPE 's managed to raise their production again after a string of disruptions So there's plenty of things to watch on the outside as well so I think it's worth keeping an eye on on both sides. What do we make of the developments in Canada GPE varity we've seen
So there's plenty of things to watch on the outside as well so I think it's worth keeping an eye on on both sides. What do we make of the developments in Canada GPE varity we've seen Prime Minister Trudeau PERSON saying he'll clear the way for further exports to Europe LOC is that is that going to be material is this the kind of situation that global leaders can have an impact This is something that will affect supply way off in the future Whenever you talk about new LNG ORG projects there's a massive lead time to that it takes a long time to construct these projects and while European NORP leaders particularly Germany GPE a travelling around the world meeting lots of different producers and saying how much could you increase product That's great but a lot of these producers are fixed and a long term contracts and if they want to expand the production capacity that takes a lot of time as well and definitely Canada GPE 's another one of those examples to do basically said that he would help take away those hurdles, the regulatory hurdles that been holding back. LNG ORG exports which is is great but it would only affect supply over the much much longer term. Better see thanks so much thanks for bringing your thoughts this morning TIME Blue Bay LOC is very ratcliffe with the latest on energy markets from a number of angles let's get a blue bird first red Update ORG some of the latest headlines we're covering here at Bloomberg PERSON here's Alice Atkins PERSON hi Anna the US GPE has warned that Russia GPE is preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE this after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dastardly crime Ukraine GPE is preparing to celebrate independence day Wednesday DATE which also marks 6 months DATE since rushes invasion. British Airways ORG has it scrapping about 5000 return flights in the coming months DATE that's after cancelling about 13% PERCENT of its summer DATE schedule due to And extended capacity curves at its London Heathrow Hub BA FAC says passengers who've been affected can rebuke alternative flights or seat refunds. And Doctor Anthony Dauchy PERSON who became a household name during the pandemic is to step down at the end of the year DATE the top US GPE infectious Z's expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease at rates since the HIV crisis. The 81 year old DATE says he is leaving to pursue the next chapter of his career. Global news 20 CARDINAL bras a day on air no Bloomberg PERSON quick take part by more than 2700 CARDINAL journalist Analyst PERSON and more than 120 CARDINAL countries. This is Bloomberg PERSON . Anna, Alice ORG , thanks very much. I'm Zack Kids PERSON in London GPE . They're coming up on the program. We're looking at talks to watch including is Alice ORG was just reporting there, IAG ORG , the parents of a British Airways ORG response to scrap about 5000 round trip flights this winter DATE . That news broke just after hours TIME yesterday DATE . So, we're getting an That this is bling bag. Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. We're trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall Estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates.
Overall Estimator are one 1 trillion dollars MONEY , a doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way, and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Welcome back to Bloomberg Markets ORG . You're 8 minutes TIME until the start of cash equity's trading. The future's picture has been deteriorating this hour TIME and this is where we are on European NORP features right now. Looking for Let's get to some of the individual components though and focus on the stocks that we have in focus today DATE . We're right joins us with an update. Laura PERSON , I guess we focus on oil, give me, we've seen actually a bit of a rebound in oil prices. We have I'm watching from the oil majors at the open and this is in response to a bloomberg PERSON scoop that Saudi Arabia's GPE energy minister. Prince Abduliz PERSON , That Opec Plus may be forced to cut production when the group meets in September DATE in a written response to question he said that the paper and physical markets have become increasingly Going on to you strong language that the market is an estate of schizophrenia Arabia GPE is the largest producer with an Plus therefore arguably the most important rant crude features have fallen nearly 22% PERCENT since June DATE this is on fears of a global But these comments are likely to be a bullish driver for companies such as Shel Pete PERSON and Total at the open. Laura PERSON good morning TIME wish small you're also looking at what's the story there? Yeah so the Swiss NORP luxury name has won the support of institutional shareholder services in rebuffing the proposal of the British NORP activist Blue ORG bell capital partners. No bluebell recommended that the formable gary sea of Francesco Tripani ORG join the board to Cloth they shareholders institutional shareholders services however said that the dissident has failed to make a compelling case that change is needed on the board it's worth noting that It's very close with the family of LVMH and therefore you could infer at a potential conflict of interest with Fid GPE instead wish one have appointed an internal board member Wendy Luharb PERSON . And IAG Laura PERSON what's the latest there Yeah so the parent company of British Airways ORG could be facing some negative reaction at the open in response to news that British Airways ORG will be scrapping eight% of their winter DATE flight schedule that translate to 5000 CARDINAL round trips the vast majority of these are short all flights I spoke with one CARDINAL analyst this morning TIME from Bernstein PERSON who told me it's not the But it's better to act proactively rather than risk running too hot cancel too late which of course would be more costly and actually Getting ahead of industry peers being proactive But the key question for the industry right now is where will demand for after summer DATE in the Northern Hemisphere LOC ? Yes and the key question for some people in my team is whether there flights will be cancelled over the winter DATE . I know this. Laura PERSON , thank you very much. You are right. We do not date on the stocks in focus. Michael PERSON , just mention BT in passing, the BT group has said that the Government has decided to take no action on Altis NORP UK's steak in the company after announcing back in May DATE that it would review it under the National Security Act LAW does this pave the way for a bigger for for a bigger state to be taken by the French NORP businessman so we'll certainly keep that stocking focus but away from the stock specifics the mood seems to be deteriorating once Just over the last hour TIME . Yeah look really much it's amazing the shift we've had in just a DATE week DATE 's time from ridiculous talk that maybe it wasn't a bear market rally and we're going to back the old time highs to now panic again I get worried when we go so extreme from one side to the other. Yeah, absolutely. So, we'll we'll keep.
From one side to the other. Yeah, absolutely. So, we'll we'll let we'll keep all of the individual stocks in focus and indeed that negativity and future. So, European NORP future is a week DATE . US GPE futures, not that future This is bling back. When I started I had no idea it was gonna turn into this. Empire. Bring that money back and just building building it building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Access PRODUCT the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Welcome to the European Market open everyone a minute TIME to go into the sort of cash I could eat trading in front in London GPE with Tom Mackenzie Continue PERSON to slide after their worst routes in 2 months DATE plus Opec ORG on alert crew gains after Saudi Arabia GPE The alliance could cut production to support prices. Tom PERSON let's take a look at futures we're seeing a bit of pressure across the board as the traders thinking that the federal reserve The focus of course is on this tightening montery policy and what does that not only for growth but Global market. Yeah, the primacy of course about speech, more hawkish commentary is expected as you say, out of Jackson Hol PERSON . We look ahead to that speech on Friday DATE from Jay Powell PERSON . You saw losses are between 22. DATE Six CARDINAL , percent on the Nasdaq yesterday DATE and of There is options expiry and some hedge fund position as well to factor
Yesterday DATE and of course there is options expiry and some hedge fund position as well to factor in to these markets just add And you saw of course a move significant move in bonds as well as the equity markets currently you've seen the footsy 100 CARDINAL down two tenths of a CARDINAL percent we continue to watch our effects as well given the pressure particularly on the single currency and sterling that came through yesterday DATE on the back again of Down PERSON four tenths CARDINAL of a percent. Over in Spain GPE , losses of 28 CARDINAL points and of course that energy pitcher as well and you saw that in Germany GPE โ‚ฌ 700 MONEY per megawatt hour or thereabouts that's the Time ORG it's gotten to those levels ever in Germany GPE compared to about 4045 CARDINAL euros per mega dollar last year DATE the future's in the US GPE pointing to further losses then at building the downside of yesterday DATE down four tenths CARDINAL of a percent Euro PRODUCT dollar again below The US GPE 2 year 10 year DATE currently at 299 CARDINAL across come to be above three% yes they currently just off by one CARDINAL basis. Two And Brent ORG in focus again on the back of those comments from the Saudi NORP 's $ 97 MONEY about account seven tenths CARDINAL of a percent we continue to watch what's happening in Iran GPE as well the US GPE and the American NORP saying there is some movement there in terms of those conversations with officials Tom PERSON this is what I'm looking at in terms of the markets on the move Let's go straight to the This Bloomberg PERSON function. You can actually type On your Bloomberg Terminal Energy the only one seeing a bit of gains this is also on the back of what we heard from the Saudi NORP oil minister saying they could cut production Because of the imbalance currently so energies up everything else is down construction technology and auto parts down some seven CARDINAL times of eight% and that's actually the lowest so those are the industries that are losing the most let's get over natural Good morning to you and you're looking at Germany GPE olds. Yes, good morning TIME , friend. Of course, FX ORG absolutely in focus with your dollar. Absolutely smashing through party this week DATE and continue to slump today DATE . It's really had a bad run and one CARDINAL of the reasons of course is that Weather PERSON 's a massive energy crisis in Europe LOC . It is a supply side inflation problem and that means it's very hard for the ACB to act. And that means the deeply negative real yields across the European NORP continent looks set to stay very very negative. Now this is German NORP reel yield. As measured by the 2 year DATE rate in Germany GPE . The headline German NORP CPI prints. It's a slightly different way to do it but kinda very much the real impact that many people feel. And as you can see it's go back over the last 30 years DATE . As you can see we've really fallen unprecedented territory over the past year DATE . Where Europe LOC 's had a real inflation problem. We've not had a reaction proper reaction yet from the ECB. And CPI is just Way to the top side. And this means that a real terms. If you're buying German NORP bonds, you're just losing money in real terms. Hand over fist. That's real problem cuz Europe LOC has a very very large debt pile. And there's this backdrop which means it'll continue to stay extremely difficult for the year DATE for the rest of this year DATE . Okay Bloomberg PERSON and Live managing it to Mark Cobmore PERSON also getting PMI ORG out at around 8:30 TIME : for Germany GPE which will give us a clear sense of just how badly that economy is faring on the back of course of that energy crisis let's get back to some of the key market drivers then and joining us now is beyond a mante city group global equity strategist and Lynn PERSON In terms of let's start with what happened in the markets yesterday Lyn let's bring you in at this point at the sell off is this is this conclusive evidence now that this was indeed a bear market rally oh yeah I mean I think we've still got a ways to go before we can consider it the full bear market rally but clearly the mood has changed Know it's just red across the board. I mean, I think the the graph you showed earlier with energy really being the only sector up today DATE . I mean, not just speaks to the big themes in the market right now. So, good morning to you. Is it just foolish to find the fed ORG right now? Hey good morning I think one thing that we have learned over the years DATE is not not to fight the central banks, right? And the reaction function of the market if we do expect slightly more ho-cash authoric from Jackson Hall FAC . It's plausible right? So bonjours are going higher and Markets after the
More honky Jackson Hall FAC explosible right so bond deals are going higher and the equity markets after the big rally that we've just had on the back of repricing the central banks to being Whichever way It doesn't surprise me. Let's put it this way. And yet we ask the JP Morgan coming out and saying that the last big hike that you're gonna see from the fair is gonna come through in September DATE and then they're gonna start to ease off and that's gonna improve supportive for equi What is wrong with that call from JP Morgan PERSON ? Well that would be that would be a great outcome if you did the the Fed ORG style that stops hiking in the in September DATE we have a bit more hawkish reaction function of the head going all the way to four four and a half percent CARDINAL into the next year DATE but absolutely more doveish cent Would be very very welcome by the by the equity markets. But I think still there is Continue to be sticky and perhaps the central banks have to hike as much as they can while they can before the recession are environment hits us Wait ORG , 100% PERCENT . I mean, I guess this is why markets are are maybe, you know, pausing to ahead of that Whole speech by J Powell PERSON or is how aggressive can they be in this kind of environment? Yeah, I mean, I think clearly the the mantra from the fat has been they're gonna do what it takes to get inflation under control and markets are now repricing you know that hawkish sentiment. I think you know the move you saw before was people starting to think things might be better than React to a new inflation dynamic of indeed we get to a point where we're never gonna be back to two% ORG where it's more like four% five% in terms of entrenched deflation across these economy what is the The equity market reaction to that longer term. I think we'll have to adjust to the new reality that it's going to be higher inflation for longer right and as long as the central banks are not going to stick to their lower than that inflation target You know, some inflation. I We've been longing for inflation for the last decade DATE , right? Not as high inflation as we have but if if it's stabilizes around three CARDINAL , four%. I think it it Be okay for the for the equity markets to to take it in What are you buying right now? Is there anything that you trade with conviction? So I am worried. Well, I'm not I wouldn't be buying into the rally I worry that the rally has gone a bit too too far I'm bullish on equities over longer term my targets are positive over the next Months DATE but the markets don't go up in straight line, right? So, I worry that there is bad news ahead Before the the good news. So Over the continental Europe LOC within Europe Towards value and I think if there is this risk of more hokeish From the feds from the central banks then I would be particularly worried about gross but gross cyclicals the most so what I've done last week DATE was to downgrade a pads of rose sickles that Done very well in the rally so industrials retailing I'm already underway to chemicals so I do worry that if recessionary worries start hitting the market market Realizing them Parts of the market have the the most toodles I'll be answer what is the call on UK GPE then you mentioned that it's one of your preferred markets add a timer cause city coming out yesterday DATE saying that inflation could top 18% PERCENT rates could get to seven% on the back of all the energy concerns the inflation crisis here in the UK GPE just unpack that Indeed a very very point but some remember that the UK GPE marketing I'm talking Futsy 100 here really is the most international market out there so it's packed with big multi national
The UK GPE market and I'm talking footsy 100 CARDINAL here ready The most international markets out there. So, it's packed with big multinationals where 70% PERCENT of revenues comes from abroad. So, it's not really a bad on what is happening in the domestic economy, right? And it has been benefit Through the first half of the year DATE because it has big waiting in commodities and from what you've said before while they might continue to do well right but also what the UK GPE has is big weighting in defensive healthcare consumer staples these are all very big sectors This region and defensives are very expensive everywhere in the world. Many clients come to us saying, well, you know, it's it's just impossible to find any defensive stats are still reasonably priced. The UK GPE is the one CARDINAL place when you can find still cheap Defensiveness PERSON so that could help the UK GPE call as well. Oh great we'll talk a lot more about the UK GPE shortly it's all playing out Lynn PERSON actually in currencies right euro dollar breaking through 99 CARDINAL . We saw that that also level that we saw yesterday DATE breaking Yeah, absolutely. I mean, I think we spend so much time looking at equities but really currencies are such an interesting story these days DATE . I mean, they were boring and low volatility for so long but it's just become such a microcosm of what's happening in in the global economy and you see the euro breaking through parody. Lots of expectations that it's gonna go lower. The pound yet Weakening and you know the dollar is dominance continues to to be the the big force in markets. Thank you so much. Arlen Thomason PERSON there and training us this morning TIME about I think city group Stays PERSON with us. Now, coming up also German NORP transfer Olive Shults in Canada GPE today DATE . Actually yesterday DATE as his government works to reduce Germany GPE 's dependence on Russian NORP gas imports. We'll have plenty more on that story next and this is Bloomberg PERSON . If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this NYM ORG This trend is coming. It's not going to stop. Is more of a small town that's growing into without call that cryptocurrency version of Silicone Valley FAC . Control your own destiny. You get that from a blockchain and you don't get that without it. The difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis The research process. To grow your practice and make better use of your valuable time. The difference is Law Go to the market that over the past few weeks DATE has made it clear it wants to go higher it got a little spook by
This is a market that over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that due political potentials are rising. Welcome back to the open everyone 13 minutes TIME into the European NORP trading day guess what it's a talk of course about Earlier last week DATE was saying it really is the only catalyst out there in August DATE and for the moment we're Pressure on these European NORP stocks two CARDINAL tens of eight% lower. Kind of kind of girl but maybe I'm wrong. Not at all. Cuz I'm gonna cocktail. There's there is a link here to Adidas and what's happening there? I don't know if you're a fan. So they're CEO of the German NORP sportswear maker. We're focused on one CARDINAL of our stocks to watch Adidas PERSON . There's a surprised part of their CO Casper ORG roasted and Frank PERSON you tell me on good A good council that it can be Adidas or Adidas PERSON . So, this what came straight from the executives now leaving. So, I wonder whether because he was mispronouncing. He said, right, Is enough. I need to find a new company. Questioning yourself. Behind this mystery around the CEO department. So that's that's Addy that's IAG ORG by the way. They are tenants bad news for your winter holidays DATE . Cancelling 5000. It seems 5000 CARDINAL flights over the winter DATE . This is BA ORG of course part of the IAG ORG group BT. Another one to watch Saying WORK_OF_ART regulators here are gonna basically look past this increase in the state by Altis NORP which is increased at stake in BT two CARDINAL about 18% PERCENT . So just a Stocks to watch in the session today DATE francing. Now, German NORP power has served about 700 years DATE of megawatt hour for the first ORDINAL time as markets panic over the country's dependence on unreliable Russian NORP energy supplies. Well, the transfer of Schultz went to Canada GPE as part of Government is working hard to end its dependence on Russian NORP gas. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never such an infrastructure has been built in Germany GPE and that is short time. Easing The process is The difficulty that Germany GPE is facing to make sure that we can move through regulatory hurdles More quickly is something we're willing to do but there needs to be a business case. It needs to make sense for Germany GPE . No, for more, we're joined from Berlin GPE by Bloomberg ORG 's Burkeet Jen ORG in our Bureau ORG Chief in Berlin GPE . We're good. Thank you so much for joining us How much does this actually help with the timeline of how fast some of the energy can arrive in Germany GPE ? Well that the government is is clearly at the moment looking at where is the energy need? And at the moment I mean we do hear that they are seem to be on course unless you know Russia GPE is cutting gas further. They do say that probably if it if Winter isn't getting too cold they they might get through this coming winter DATE with the existing energy storage But there are more worth it or what is going to happen in the next year DATE and during the winter and therefore they say they need to make sure now that in the medium term in in the in in the next couple of months DATE they are gonna get LNG ORG for example from Or also extra gas from Norway GPE and they're also still in negotiations with Qatar GPE . Bucket PERSON just before I get to my next question. Just gotta highlight some redheads crossing the term. Of course, this links into what's happening across the energy pitcher. In Europe LOC , In this case we're talking or we're waiting for the germ appear my out at 30 minutes TIME passing out but now you got French LANGUAGE August DATE services PMI ORG come in at 51 CARDINAL so below the forecast of 53 DATE that is gonna be concerning for officials in France GPE that services beer mile for the month of August DATE coming in at 51 CARDINAL so still inexpensive territory but the forecast have been for Manufacturing PMI in contraction 49 CARDINAL at the forecast have been for 49 DATE . Again, that is for the month of August DATE . Burget ORG , as we tie in the broader economics to what's happening in the gas pitcher. Across and the energy picture across Europe LOC . Where was the urgency from policy makers when we're looking at โ‚ฌ 700 MONEY per megawatt
A broader economics to what's happening in the gas picture across and the energy picture across Where was the urgency from policy makers when we're looking at โ‚ฌ 700 MONEY per megawatt hour in terms of german NORP power prices long term conversations with the Canadians NORP is not gonna be enough is it? No I mean they they are looking at at the impact obviously for the economy you pointed out that Europe LOC obviously is already facing The economic backlash in Germany GPE is at the at the border of recession. So what they are looking at is actually also to keep the the the balance right between the impact for the company so that the companies can still pay their the rising for the rising energy, prices, and at the same time also to keep basically on the one hand, the Unrest ORG under control and and also the so the the burden for consumers therefore the government is looking at Rebutting that the bird and they have passed this surcharge which is passing on โ‚ฌ 500 MONEY per family to the consumer and we will see some further measures also including further fiscal stimulus from the government. Berga thanks so much Burgan Jen PERSON and there are chief in Berlin GPE now let's get back to Batman PERSON the head of European NORP equity strategy at a city about that we're talking a little Before about your biggest conviction we talked about inflation in the US GPE and then we started talking about the UK GPE I know city really shock waves you know across trading room floors with that 17% PERCENT call on possible inflation in the UK GPE does that mean that you're you know reworking a lot of your Forecast around Europe LOC as well. Oh in terms of the UK GPE forecast it is really So the conviction is that higher Higher food prices, higher energy prices are going to hit non-corbonic core inflation is Is much lower right? It's around Six% it's more in line with with where consensus is and You know, the winter is coming and of course, energy crisis as we've discussed before, continue to stay high, right? So, you've got to imagine that there'll be inflationary pressures coming through into the winter. Be out of Anna's expecting what 10% PERCENT earnings grow this year DATE five% next year DATE what what is the earnings the EPS ORG contraction when we factor in this gas shock So, this is one of my biggest stories, right? That's earnings expectations. It's definitely have to come down. You said Anna is our Plus five CARDINAL for the next year DATE . However, it should be fair if we exclude Out of this 10% PERCENT is a more reasonable two% ORG for for this year DATE but 10% PERCENT for next year DATE right and if indeed as city economists forecast we are going to get hit by recession in the Euros LOC zone next year DATE that's that's Far too far to bullish so I think It could come to the negative number for this year DATE the pain will be concentrated around the winter months DATE and quarters of course year on year DATE we could see construction of around 10% PERCENT a big EPS ORG recession It's around 30% PERCENT contraction. So, you know, this minus 10 can improve even over the optimistic. Okay minus 10 CARDINAL in terms of VPS ORG can even that can sound over the optimistic and they call that of course to upgrade tell goes to over eight CARDINAL particularly concerned about Cyclicals. Of European NORP equity strands at city thanks for those insights as ever coming up Saudi Arabia GPE awards that volatility in the oil market May 4 DATE Opec class to cut This is a redhead cross the terminal saying that the US GPE retail gasoline falling to its longest run of decline since 2015 DATE just some good On flash. Can we get the details around Saddy Arabia GPE ? And oil next. Stay with us. This is
China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs of more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth. But it's come at a cost. Is the world's largest greenhouse gas cemetery? There is no way to tackle climate change unless China GPE reduces its emissions to need oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. Severely hump All this has led the world's biggest polluter to take steps towards a radical transformation. On the David Rubenstein show here to peer conversations by uncover the untold stories of the world's most successful leaders. Watch Wednesdays DATE on Bloomberg Television ORG . Welcome back to the open we are 24 minutes TIME in studio European NORP trading day just recapping a couple of redheads across the terminal important when it comes to anyone looking At the energy complex so US Natural Gas ORG prices hitting $ 10 MONEY for the first ORDINAL time since 2008 DATE that is gonna be linked so of course a searching at demand setting In in Europe LOC when it comes to gas prices we saw those jump more than 10% PERCENT just yesterday DATE alone and of course German NORP energy prices getting to Above โ‚ฌ 700 MONEY per megaward hour. The other component when it comes to energy and this is at the pump in the US GPE or in Portland GPE when it comes to inflation Portland GPE when it comes to the politics of the US GPE leading up to those midterms in November DATE . Us GPE retail gasoline falling in its longest runner twice since 2015 Francine PERSON . That is important when it comes to that the The fact that gas prices now these petrol prices, gas prices at the pump coming down. Yeah and again, we're starting now to see a lot of pricing forward because they worry about the winter and I saw one which I would say is absolutely terrifying. He's from energy aspect saying that gas prices cause rice โ‚ฌ 400 MONEY . It flows via North Stream GPE to stop in Number GPE . And support what's happening when it comes to Northstream that's cosing down at least for 3 days DATE according At the end of this month DATE the concern being that it won't come back online right let's get what's happening Saudi Arabia GPE then energy minister saying that Opec ORG and it's allies may be forced to cut output as the future's market has become Disconnected from fundamentals for more. We are joined by Bloomberg PERSON all reports of verity, right? Priority. What are the details? What we know? So he was pointing to extreme volatility in the market was essentially saying that futures prices are swinging wildly whenever there's a change in sentiment. Ehm pointing particularly at any moves from Russia GPE or signs or the global recession. Ehm which is of course the case he also said that Opec ORG may need to make a cut and that's already had response from particularly Asian NORP refiners who of course use that crude as a feed stock. What does.
May need to make a cut and that's already had response from particularly Asian NORP refiners who of course use that crude as a feed stock. Verity what does this mean going forwards actually does it mean that we could see production cuts quite quickly We'll certainly be talking about the next meeting of Opec ORG and anything that Sadi Arabia GPE says is looked at very closely as the most powerful member of the Opec ORG group They never really give too much away before the meeting. But just the idea, raising the possibility that they might cut is certainly interesting after many, many months of having a rollover event, basically, Opec ORG , whereas predetermined, and everybody sort of had Dear WORK_OF_ART what was gonna happen next? Very thank you so much Spit of a Whip Lash effect. PMI ORG readings just in a few minutes TIME this is Bloodberg PERSON . So the inflation environment has been changing a little bit. Inflation has been very low for 25 years DATE . Now people think inflation's coming back. How are you gonna deal with that? I think many of the tools that we've historically used to ballot inflation no longer work in the same ways they used to I think people often times thought of of housing as a way or or especially retail and real estate is a way to to hedge against inflation Less and less possible the way we've invested in it. I think commodity similarly have been thought of as a way to hedge against inflation. There are challenges over the long term equities have been a hedgehog inflation. We will continue to do what we have done in the past the possibility of heading against inflation. Because Types ORG of inflation have to be hedged in different ways. So, if it's a very quick increase of inflation as opposed to a slow rise of inflation. Is it temporary? Is it a long and a persistent type of inflation? So, for us, I never model myself in economists that can predict where inflation is going. And so what Portfolio where they are different options that can fight the different types of inflation and to pay close attention to it and and Fundamentally it's done through the equity The really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Welcome back to the open everyone 30 minutes TIME into the European NORP trading day and here are your top stories below Global I could actually look for direction after the worst route in 2 months DATE Cut production to support prices. Now, things
After the lions could cut production to support prices. Now, things dumb are looking a little bit different in the market Yeah a little bit of a turn around in Sentiment. Hedge fund positioning but high yields as well particularly impacting cause tech. And it's too really important stories predicting when it comes to Again. In focus for us today DATE . We're looking at US GPE natural gas prices. I was getting to $ 10 MONEY for the first ORDINAL time since 2008 DATE . But at the gasoline in terms of the pump and this is important of course for households in the US GPE and for the politics Look we could cut back on output. In terms of how the market's shaping up then the broader benchmark currently down a 10th CARDINAL of a percent turning round from the bigger shop that we were seeing in terms of Is just in positivity just up three CARDINAL points 5100 CARDINAL down four tenths CARDINAL of a percent as well we'll switch it over see how things are playing out across these sectors energy is in the green as autos as well basic resources Only at one% on the back of that stronger oil pitcher again tying in to Bloomberg PERSON 's conversation with the energy minister of sound the Arabia and that threats there to cut production based resources also get United ORG tens of percent PERCENT a number of sectors still in the red though including food and beverages media and health care as well that are the shape of the sectors at least 30 minutes TIME Trading station this Tuesday DATE . Energy up one% ORG . Now, turning to the economic picture for Europe LOC concerns continue to mount. That's as a fallout from the war in Ukraine GPE . Drives up energy and food cost. Now, as This morning TIME which are giving us a bit of an insight into the challenges facing the economy. Now, from where we're joined by Lizzy PERSON Birden PERSON . Hi, Lizzy PERSON . So, what have we learned And what else are we expecting? Hard. The French NORP data. It showed contraction on the composite PMI ORG . And manufacturing but slight growth when it comes to services. We're still waiting for the flash composites for the euros zone and the UK GPE . Booths will give us an indication of How much the soaring energy costs and the risk of Russia GPE cutting off gas supplies will threaten a recession across Europe LOC We're expecting to see contractions in both Europe LOC and the UK GPE in August DATE and then Bloomberg GPE economics looking ahead to the fourth quarter DATE is expecting recessions in both don't forget in the UK GPE consumer confidence is at a record low we saw it in that GFK ORG survey it's at a level that's Consistent with a recession already and we're not even at the peak of inflation yet. But what I would point out is there are economists also say that a UK GPE recession is expected to be milder than previous Historic PERSON ones. We've got this healthy household balance sheet and also the expected substantial fiscal response. Our economists say that even Let's trust says that a recession isn't inevitable. Er it actually despite the tax cuts that she's promising is likely though not to the extent Without without her help. Yeah it's something consensus now isn't it the UK GPE is gonna be adding or falling into recessionary territory if it isn't already there the euros own as well many economists saying that that is almost inevitable recession for the years DATE I'm just getting that German NORP manufacturing data it's actually a beat on the forecast for the month of August DATE so manufacturing PMI ORG coming in at 49 DATE . Eight CARDINAL so still just about in contract But the forecast have been for 48 DATE and I believe it's a beat on the July DATE number as well interesting of course as we know the industrial sector in Germany GPE under pressure as a result of those very very high energy cost that we're talking about yesterday DATE services PMI ORG by the way falling to 48 CARDINAL . Two CARDINAL that was a big miss from the forecast of 49 CARDINAL manufacturing it seems seems to be holding up better than some had expected Are over in Germany GPE . Lizzy PERSON you were in Felix though yesterday DATE at the glamor Location of Felix Oport ORG . At day three DATE of the strike there. Talk to us about what's happening. What would the mood was on the ground and whether or not there's gonna be more industrial industrial unrest not just a feeling so but beyond in the UK GPE . Really interesting talking to workers on the picket line Tom PERSON . They said that they're going to stay there holding out until they get a 10% PERCENT pay rise because of course we've Double digit inflation in the UK GPE .
Workers on the picket line Tom PERSON they said that they're going to stay there holding out until they get a 10% PERCENT pay rise because of course we've got double Inflation in the UK GPE . But of course we had that forecast from the city yesterday DATE saying that inflation in the UK GPE could go above 18% PERCENT next year DATE . So I asked them Even if you got 10% PERCENT that would look nigger by the time we get to 2023 CARDINAL they said they'd hope to renegotiate in the New Year EVENT I should Out though that that city forecast is perhaps a bit aggressive because it assumes that policy makers will do nothing and there's a report on the terminal today DATE by my colleague Joe Mays PERSON reporting that Liz Trust ORG would at least do an emergency spending A budget but a spending package to help people with their In September DATE . Okay, there's a burden. Thank you very much indeed. Just to to remind viewers so that manufacturing peer might have always had a journey. Was actually better than the forecast but also as a beat on July DATE as well. 49 DATE . Eight CARDINAL for the month of August DATE . Compared to 49 CARDINAL . Three CARDINAL in July DATE and the Euro PERSON just pairing somewhere Losses on the back of that data currently down two tenths around two tenths of a percent QUANTITY still at below parity now as we just heard concerns โ‚ฌ 4 MONEY area economies continue Out or maybe maybe this pier my date around me is sway just some of the more drastic concerns is having the impacts on the euro as I mentioned currently at trading below parity What is happening in terms of the dollar king dollar is is a key factor When it comes to the europe LOC but also of course sterling and EM currently said no mirror G 10 FX ORG strategy spoke to us earlier About the perfect storm that is engulfing the single currency at the moment It has been mostly a dollar story. Euro has an under performed as much as I think it should. I think the the FX ORG market is totally miss pricing. The situation you're the situation is a complete rethink of the economic model near your zone and I'm just it is struggle. It's strange for all of us to see the euro. Sending off so slowly. I think it should be much faster We'll be testing 97 50 CARDINAL down towards ยข95 PERSON in the next few months DATE . Now, we're joined by John Hardy PERSON . He's head of FX ORG strategy at Saxobank ORG . John PERSON , good morning TIME . So, going back to that German NORP manufacturing PMI ORG , a bit better than expected but anything below 50 CARDINAL . Still indicates a contraction. What are currently stretches missing? I mean, we're heading towards a recession and and there's probably a little way out of it. Yeah. We've gone down pretty far, pretty fast. Let's recall we're trading. Up above 103 CARDINAL , not that long ago. Found well below parody, yes, a slight beat on that, but if you look forward, of course, at these energy prices, these four CARDINAL prices for power for natural gas, we're talking about levels from Kiwanis NORP . I'm And understanding that companies are some companies who are not simply not hedging at these prices so either the prices have to come down or or production will stop To some degrees. So, that's that's the oblique outlook you have in Europe LOC with this current shutdown of the Northstream LOC on pipeline etcetera. So, yes, the Europe LOC your zone and the euro is be set with a very ugly menu of problems and I see continued pressure There unless there's something a very dramatic it develops in the the US GPE dollar side of things and I'm not saying that. So, this parody break, it could be quite considerable and we're looking down towards the next big round levels. The oh spot 95 CARDINAL , even oh spot 90 CARDINAL if We're seeing in the Ford ORG market for for power et cetera. If we realize those prices. What would take 00 DATE . Nine 5090 DATE . What what gets euro to 090 CARDINAL . John PERSON . Is there a job? Let's when you have when you begin to have an actual shutdown of key parts of industry a real a real crisis during the winter this is not something I'm calling for it's it's a risk we do have a hopes that the the natural gas bill is sufficient to keep Europe LOC won Winter DATE but actual manufacturing could be another story and as your previous strategist indicated you're talking about a re redefinition or rebuilding of the entire years DATE on growth model particularly in Germany GPE which was unfortunately based too much on cheap Cheap Russian NORP gas. That takes time. This is not something you accomplished over the course of a single winter DATE . So, this is a long-term issue. In the meantime, I think the US GPE the US GPE dollar and US GPE economy strength We could see it just sort of rolling on for another quarter CARDINAL plus beyond what the market's expecting in terms of the
I think the US GPE the US GPE dollar and US GPE economy strength We could see it just sort of rolling on for another quarter CARDINAL plus beyond what the market's expecting in terms of the the timing of the recession the timing of the inflation slowdown and I think that's gonna keep the dollar bid the fed ORG is gonna have to stay on message probably see that this week DATE with the the Pals Beach but as well quantitative tightening and that hasn't really even Screwed up to this the pace that we need to deceive. Just going quickly back to the auzon so our Bloomberg GPE economist actually Can have a shallow recession as long as consumers are shielded towards, you know, for the energy cost going up. Is that possible? Like, if we have a much Or winter DATE ? Actually stop that you should be in its track and raising rates. Well It's a cost of living crisis it's a it's a real slowdown so it might be shallow or it may be short but I'm not sure it's gonna be that particular particularly shallow in terms of the real GDP impact so it really Ends on what the energy price looks like. Come spring. I think if you wanna call this recession and and I'm simply not capable of telling anybody what's that price might be and that's going to be the determinant here. When it comes to to the pound a sterling John yields up and we saw that yesterday and yet the pound continues to be hammered. Trading according to some like an EM currency. Does does it continue Tell us about about the state of the UK GPE economy. Hey Well it tells us about the state of the confidence in in the pound because it is a as you say it's a very remarkable set of developments when you have The rates are pricing in a tremendous you know significant acceleration of the bank of England GPE 's had a tightening plans and yet the currency does not respond. I think it speaks to the the set of issues facing the UK GPE with the massive external deficits with the new government coming on board. Very popular Gram PERSON not likely to shore up the fiscal situation in any meaningful way. And Stoney PERSON is going to take the impact there It just yawning. Again, yawning external deficits. I I don't see what approves the situation for the pound and you know, it was talking about the euro. I think the pound is in even worse situation. I mean, we could be talking about parody Starting US dollar by the end of this winter DATE , if something doesn't improve in this outlook. What's your call on on your sterling Brooklyn. You're a sterling sort of indifference. If you are, you know, I think I think Sterling ORG 's issues are are heavier. I think we could go a bit higher but I'm not expecting drama and that's and that pairing but I would I would expect starting to come out on the weaker side of that incoming months DATE . Okay John Hardy PERSON head of FX Stransing ORG at Sankso Bank ORG at the pound could get to parenting with the US GPE dollar by the end of this winter DATE thank you very much for your takes coming up Chinese NORP banks are employing unusual practices To inflate their loan volumes. We look at Vulnerabilities LOC being baked in to the Chinese NORP economy. Stay with us this is. This week DATE as the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the kansas city feds 2022 CARDINAL economic policy symposium Discuss the economic issues and solutions that keep the world's money moving coverage starts August 25 DATE on Bloomberg PERSON television and radio
Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. I think it's happening. And COVID ORG has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semiconductor industry overall and estimatar a one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point. Leave those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology but which only three CARDINAL companies can satisfy that needle. No one covers the world like bloomberg PERSON . Seven% in the coming months DATE . 24 hours TIME a day. Welcome back to the open everyone with 45 minutes TIME into the European NORP trading day we're seeing games that we didn't see at the open about 45 minutes TIME European NORP stocks down one 10th CARDINAL of a percent. A lot of people Tom PERSON are actually on holiday which is I know volumes are a little bit thinner and really it's all about Jackson Honey PERSON . I have such a big speech from J. Powell PERSON . Everyone's kind of a little bit away than sea mode, right? I feel in a wedding sea mode. I'm like looking at tickets for Harry Styles PERSON or maybe a couple of football games. I look at the markets But it's really Friday DATE because you're entertainment use them. Football games. I mean we're still buffaloed by why you're a Chelsea PERSON fan but we'll we'll look past that. They're playing for him. Okay all I care about is the fact that Arsenal are doing very very well indeed. There we go. There's entertainment. Yeah of course we're looking how to Jackson GPE . Is it a big surprise that we're expecting more Hawkish NORP Commissioner? There's gonna be a pushback. Mark the the liquidity depends on how hockey is right. That's not a For the fed ORG officials within the fed ORG of suggested trying to push back on on this narrative that we're seeing from the markets that you're gonna get a pivot. The JP Morgan saying the last big hike is gonna come September DATE . They're not saying is the end of the hiking cycle but the last big 175 CARDINAL base points in September DATE . Yeah. And then you're gonna get an easing off and that's gonna approve supportive. The Bulls at JP Morgan PERSON . Yeah, what I love is also On Twitter PERSON and also hear all the time and it feels like the market are finally clocking up to the fact that there is something that that will happen in the winter If we have a very cold winter DATE and so those prices are just going through the roof in the middle of August DATE . On on oil and and what is happening with this energy crisis and there's an energy crisis in China GPE as well but we're gonna be talking about what's happening in terms of real estate and in terms of the demand for loans. The energy crisis by the way hitting such one. In China GPE . Some banks from flating low numbers as they struggle to meet government demands inflating. Demands to pump more credit into The economy is an intriguing story. It tells us a lot about what is happening in that economy. Let's bring in Bloomberg Sr. Editor for Greater China Finance ORG Jonas Bergman PERSON in Hong Kong GPE . Join us. What is driving this inflation there are the numbers out of banks. They're kind of fiddling the books for the regulators to try and show that there's demands blown when maybe there isn't. Well, there there's certain being creative. It's it's an interesting development. The Chinese NORP banks Chinese NORP banks are caught in a very tight spot right now. On the one hand, as you said, the government is banging the drum for them to land more, to get the economy going, while on the other hand, they are finding very few Is
One CARDINAL hand as you said the government is banging the drum for them to learn more to get the economy going well on the other hand they are finding very few To wanna take out loans given the uncertainty in the economy so back as we have spoken to say that a certain window dressing is going on with lenders dolling out loans and then taking back those funds basically paying the same rate on on the demanding the same rate on loans and the deposits So with credit growth credit increase last month DATE hitting a 5 year DATE low it's it's it's it's it's incredible that that in fact those numbers were even more dire than than they showed. So Jordan PERSON 's what are the risks actually of this approach Well, well, given the the the banks are currently also dealing with a major property crisis big big rises in loan losses. So, certainly Narrow emojis so certainly these types of activities is is not gonna help that. There are also in China GPE . A lot of smaller companies climbing for financing. Which are, you know, and banks tend to be the big banks in China GPE tend to be fairly conservative. So, Smaller companies millions and millions of them are are being forced to pay rather high rates outside of the you know outside of the the regulatory or more in the in the non banking market so there's a lot of risks for the Chinese NORP economy coming up and and you know just this sort of window dressing is is probably not Best right now on the for any any any party in the economy really. Do you wanna thank so much Johnsburgman NORP there in Hong Kong GPE tour I have played two CARDINAL more of course on China GPE one of the most interesting probably stories that we had in August DATE and that surprised by PBOC that they did so little about 2 weeks ago to support some of the households so we're actually real estate coming up shares in the world second ORDINAL biggest cinema group Continue ORG to plunge coming up. We look at what's next. For the troubled, very troubled company. This is Bloover GPE . Soaring energy prices in a short supply of key chemicals that produce synthetic fertilizers Are sending pig, cow, and horseman your price is soaring even human waste is in demand as farmers hunt for alternatives fertilizer helps increase crop yields How much moisture is held into this? It's it's a lot of organic material into the compost of breaks down the menu and the straw breaks down into a Fryable mix so it can be mixed into your Soil in the ground and and for growing a whole range of different vegetables Hold the nutrients in holds the water and harm it really increases the The kind of buyer any profile disorder. The recent price bike could mean more farmers going organic for the long term.
I think that it's hard to put your head around any narrative. Let's just be honest. We've had sort of a shift in are we in some sort of calculation, fears, moment, people are talking about that all day DATE yesterday DATE . Welcome back to the open we are 52 minutes TIME into the European NORP trading day you're seeing a bit of an adjustment Sentiment PERSON after that significant seller that we saw on Wall St yesterday DATE you're essentially just down about a little under a 10th of a percent across the European NORP benchmark but future state side of turned around US GPE features SMP minis pointing to gains of a little over a 10th of a percent a similar pitch for the Nasdaq of course which sold off at more than two CARDINAL . Six% yesterday DATE the Euro ORG as well Some of the earlier losses to currently trade still below parenting at nine nine DATE at three CARDINAL six. Just down the 10th ORDINAL of a percent after some manufacturing peer mi for the month of August DATE at a Germany GPE came in better than expected. They're still in contractionary territory. Right, let's take a look at the events today DATE . Other events that we are watching this morning TIME . We're gonna get more PMIs from Europe France GPE and Germany GPE . With the Eurozone at 9 AM TIME London GPE time and the UK GPE at 930 CARDINAL . Then at noon TIME at Europe LOC here in Europe LOC the focus continues to be with Fabia Panetta ORG speaking in Milan GPE at 3 PM TIME after the US GPE markets We're gonna get new house sales data painting a clearer picture of the state of the US GPE economy in the last month DATE the mid some pretty decent reporting from Bloomberg PERSON around the drop in house prices in some of the hottest markets there yeah it's good reporting elsewhere in the US GPE primary elections in Florida GPE and in New York GPE later tonight TIME we'll hear from Minneapolis GPE fed presidential Kashkari PERSON as Justin Trudeau PERSON on day two DATE of his 3 day DATE visit the focus Diversify Germany's FAC energy supply. Right, let's talk. Also, about center world, shares in London GPE based cinema chains, cinema world dropping again today DATE after an 80% PERCENT drop last week DATE . Now, the firm said it was considering a voluntary chapter 11 LAW filing in the US GPE . As it seeks to cut its five 1 billion dollars MONEY debt. Now, joining Also maybe trying to get some bargains to go to Not happening but what exactly is this company like why isn't it such bad position They had a very bold strategy in the years DATE heading up to the pandemic. They borrowed Lee PERSON to acquire regal in the US GPE , which, you know, built them an empire, made them the second ORDINAL biggest chain in the world, but that had them at a high percentage, a high multiple, and you know, no one plans for a oh revenue outcome, but that's what they faced and now, you know, after extending many lifelines negotiating with land Negotiating with lenders, waivers, Sort PERSON of running out of road and they've they're looking at their voluntary Come back to haunt them. What what is next then for this company do they become they go through bankruptcy they do chat to 11 CARDINAL did they then become AA takeover target what happens with their assets how do you see the unfolding yeah I mean Of questions and and what we're gonna have to to do some reporting and see but if if they do carry through with the the chapter 11 LAW they'll be protracted talks with creditors they may end up taking control of the company and you know then they've got new owners already that we'll see what they want to do that will erase questions over jobs oversight And over the strategy which you know some have criticized even before the pandemic so you know these processes can take months DATE even years DATE so we'll we'll wait and see they they criticise that the film slate this year DATE in a world and that that's another reason why they believe that this has come sooner than maybe they expected you know not many big summer blockbuster Those big movies going straight to streaming versus being released into the into the cinemas but a bold sometimes these these pay off and in this case it has. They could have looked like James PERSON . Is that your is that your call for the movie to watch? That's it. That's my call. There we go. Fantastic. Much on the plight of Sydney World ORG and we'll continue to watch that story for you. As well, in terms of the market, is this a quick to check before we get to break currently across the benchmark. You're down just a little under a 10th DATE of a percent here in
And we'll continue to watch that story for you as well in terms of the market this is a quick to check before we get to break eh currently across the benchmark you're down just a little under a 10th DATE of a percent here in Europe LOC but futures as we mentioned In the US GPE pointing up now SMP ORG is up two CARDINAL tens of percent similar picture for the Nasdaq as well Euro still parenting but in 99 33 DATE just down a 10th CARDINAL of a percent a little bit of a turn Sentiment of the heavy selling in the US GPE yesterday DATE . Stay with us. That is it for the European NORP market open surveillance early edition is up next. This is Bloomberg PERSON . When I started I had no idea what's going on turn into this. Empire. I don't have any investors. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. On the David Rubenstein show here to peer conversations I uncover the untold stories of the world's most successful leaders watch Wednesdays DATE on Bloomberg Television Hey Facebook Welcome to Dead Australia. Hey I don't think it needs to be part of the cure but we we've experienced that we let inflation build up over time like it's in the 70s it was 7 years DATE of higher hiring We nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about. We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible. Never such an infrastructure has In Germany GPE and that is short time. Canada GPE can and will position itself to be. A key supplier of energy to the world. Is Bloomberg PERSON surveillance early edition with Francine Laqua PERSON . Well, good morning everyone in Walk ORG .
Surveillance Well, good morning everyone and welcome to Bloomberg Surveillance PERSON . Early edition in front of here in London GPE , here's what's coming up on today DATE 's program. Below parody, recession fears, and the energy crisis, push through euro to a two decade DATE low. Stocks in the red, well, glow black hoodies continue to slide after their worst route in PMI ORG coming 49 DATE . Seven CARDINAL it's a touch better Mainly supported by Germany GPE but again anything below 50 CARDINAL means there's still a contraction if you look at services PMI ORG that's falling 50 CARDINAL . Two CARDINAL so that's actually worse than expected now the picture across the board for European NORP stocks pretty much unchanged traders really bracing from a lot more hawkishness from the Speaking to Arlyn Thomas PERSON and really one of the things that we need to spend More time on is a currency yesterday DATE we touch parody currently at 199 31 DATE and this really goes back not only to energy supply in Germany GPE but also dollar strength king dollar and what that happens or what happens with that next 6 months DATE the 10 year DATE yield that 0109 DATE . Again, if you look at the change in the markets and we'll get I think to the map shortly. It's very clear that the markets are expecting a lot of hawkish stance from the federal reserve maybe not to something that was priced in but certainly energy shares amongst the the only industry group today DATE making some pretty Finance ORG minister not That they could cut a production the UK GPE you can see the footsy down two CARDINAL tenths of eight% so mark it's a waiting clues on how It will be a central bankers gather this week DATE at Jackson Hall FAC . We spoke to Stanford University Economics ORG Professor John Taylor PERSON who's at the very first ORDINAL conference for that kids ago. Well, he says the fed ORG should be more communicative about where policy has to go. I say five% is what we should aim Let's let that and that is not high by historical standard that's Remember what it was in the 70s DATE . But it's it could be high. I would say I wouldn't say absolutely five CARDINAL . If inflation doesn't come down then it may have to be higher but I think a place will come down and we can stick it at a level like that but let's get there first ORDINAL . Now we're joined by Morgan De LaDonna ORG head of Vestal Stragy PERSON for Europe LOC at Global XEF Morgan thank you so much for joining us a lot of the focus is actually on equities but it's What are the forces that could push at some point dollar MONEY to stabilize someone? That's the markets are expecting more occasionist from But one CARDINAL thing that shoots tabilize the pair would be a more occasionist from the ECB as well because when you look at headline inflation in Europe LOC core inflation in Europe LOC they're Trading higher to it turning higher and that is likely to trigger some more occasions from the ECB and that should stabilize the the pair. So how hard can you expecting this to be to be despite some of these concerns of course about even a protracted and ugly downturn if energy prices go much higher? I think for the He'd be the key input to inform their decision in terms of the size of the hike we'll still be cool inflation in the near future because when you look Services inflation. It's training higher. So, I do think the ECB might go for another 50 CARDINAL baby spontaneous. And that that is something that is not currently priced in because the market is Focus on the downtown on the economic side but given the energy crisis in Europe LOC I do think that inflation will probably be more in focus at the ECB than actually the incoming data inflation definitely and focus everywhere because Cost of living crisis if there's enough support to fiscally from countries can we avoid the worst of a recession It's really hard to say I think at the moment there's taxation scenario is becoming that the most likely scenario in Europe LOC and that could come up.
It's really hard to say I think at the moment this taxation scenario is becoming that the most likely scenario in Europe LOC and that could come That could happen actually before the end of year DATE so stagnation is the the main risk physical side it can be contestatically cool but at this point in time given the inflammation Data is seems that it's pretty unlikely to have anything on top of what's already Agreed on. So we're gonna overall what are you most when you look at the markets? What do you think is most being mispriced? Well there's disconnect between Headline WORK_OF_ART is something interesting I'm looking at because when you look at the headline inflation there is a likely risk that the market is seeing the fed ORG to remain okay but headline in fishing may have already So yes the market may have priced these Dovish NORP Peter Early prematurely but made perhaps by not too much. We have a great chart actually looking at what we're seeing in terms of energy and the fact that some of the energy panic is really also hurting your upper Of putting some great charts together on the back of those flash PMI ORG is when you look at natural gas apparent coal like this kind of chart should traders you know to take action more than they have so far What is this charted definition shows the challenge from from the ECB a bit of a catch 22 CARDINAL where the ECB is trying to cap to cap inflation so far The the control over headline inflation has been complicated because it's what's mostly driven by So the ECB that that is the reason for the ECB to continue to to high interest rates despi Some some down toes but all of these rise in European NORP energy prices is is saying that yes the picket headline inflation may be quarters maybe For spring next year DATE . They're ahead of investment strategy for Europe LOC at global Staying PERSON with us. Now, coming up, the German NORP Chancellor, Olive Schulz PERSON , visits Canada GPE , has his government works to reduce Germany GPE 's dependence on Russian NORP gas imports. We have more of that story next and this is Bloomberg PERSON . This week DATE As the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the kansas city feds 2022 CARDINAL economic policies Bloomberg PERSON 's all-star team is alive as policy makers and financial insiders discuss the economic issues and solutions that keep the world's money moving coverage starts August 25 DATE on Bloomberg PERSON television and radio If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it In our point was Wyoming GPE can beat that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this in Wyoming GPE we wanna make sure that people understand especially in Wyoming GPE but as United States GPE as a whole this trend is coming it's not going to stop. This is more of a small town that's growing into what I would call the
This trend is coming. It's not going to stop. More of a small town that's growing into what I would call the cryptocurrency version of Silicone Valley FAC . Really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. I'm David Weston PERSON . We think that's the next secular shift. Yes, it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. I got Alex Finance PERSON politics. This is Bloomberg PERSON surveillance. Early edition and fronting like we're here in London GPE . Now, German NORP Unreal unreliable Russian NORP energy supplies for the chancellor all of Schultz went to Canada GPE as a part of a push to Alternative source of gas and he emphasize that his government is working hard to end its dependence on Russian NORP gas We are working hard to become independent of this gas supply and we are doing a lot of investments to make it happen and we are doing it as fast as ever possible never Reception ORG infrastructure has been built in Germany GPE and that is short time Easing the processes because of the difficulty that that Germany GPE is facing to make sure that we can move through regulatory hurdles more quickly is something we're willing to do but there needs to be a business case it needs to make sense Sorry butchered your name cuz it's a Tuesday DATE in August DATE . I will get it right. I promise. I'm at we'll all alternatives do Russian NORP gas to Russian NORP gas. Actually, does Europe LOC have in the short term and longer term? While indeed in the short term Europeans NORP groups are quite scars because it has to get LNG ORG from the market available cargos that already been produced so it's up to the companies that they're able to supply this Monacos GPE to for example this allergy Canada GPE Canada GPE quite close to Europe LOC Is the few days DATE of shipping but the the deal cancels on west part so it's a very difficult to read the gospel was to to east and to the loss of projects to Bill PERSON and she passed counter for years DATE and none of them have moved Possible. We'll see if it's John's interest. We'll push them forward but Business case actually feel this energy Thought of It's not an easy task for you So Anna is there at any ceiling to prices? Well there's Los Angeles GPE as you see prices are now already more than 20 CARDINAL of over 10 times a higher than six CARDINAL now average for for the summertime and energy aspects that Pipeline ORG is going to be shut for 3 days DATE in from the 31st DATE of And the reason Will not come online
Pipeline ORG is going to be shut for 3 days DATE in the 31st of August DATE and the risk is market sponsor that the pipeline will not come online after the maintenance and the prices good at a good search higher is that happens now that the ceiling might come from demand destruction because at least high prices were Limited PERSON so see the remaining of of this very high prices on industry in particular a chemical industry and particular in Germany GPE as well And I thank you so much. I wanna try not to mispronounce anything. If I actually get it wrong, I wanna pay a mega watts LOC which will make you rich woman in like a week DATE . I know she ruska. Joining us on the very latest. For energy prices. Now, we're back with more Gandalidon ORG , head of investments strategy for Europe LOC global We're gonna we talked a little bit about of course the energy price. Again, it seems that when you look at equities and I guess the problem is the energy is that it's used for making everything. If you're if you're making for example glass in Germany GPE and the price goes up you may also be shut down. It is it are the markets realizing this What exactly is priced in? I think it's This pass through effect now in terms of equities and an activities we we do see that there is a slow down in a Now in Germany GPE that will lower the gas demand and maybe reduce some of the demand and therefore some of the pressure on the price down the line but there is still a risk in the short term because of They they capacity of of building reserve before winter DATE in in Germany GPE seems quite challenging despite lots of effort To try to see alternatives. So, in the short term, I think there is still some options LNG ORG we mentioned it before but also like nuclear. There is also Change that Germany GPE reassess is view on on Nuka PERSON power if there is a risk to the economy so nuclear and Europe LOC has been actually one of the the first ORDINAL option for for some other countries in the UK GPE France GPE and that that could be something for the shorter down the line so we're gonna talk to me Yeah down the line finish with that yeah down the line it's more looking at investment in clean energy as we knew it both and and hydrogen yeah we're gonna Zoom in for the UK GPE so we have this pretty incredible call by city saying inflation could 17% PERCENT . Really mean because it costs a living crisis due to this energy While in the UK GPE on top of having an energy crisis you also have a effect and the UK GPE imports a lot so that there's still maybe in terms of this taxation scenario it's even bigger in the UK GPE compared to continental Europe LOC that is for sure but in terms of Acting inflation. It's really hard to say because there are lots of moving parts on on the energy side and any will all depend on what is the solution in the near 10 CARDINAL . Do we like increase nuclear capacity or I will reducing demand. Alright we'll get thank Ahead of investment strategy for Europe LOC at global ex ETFs now coming up full coverage of the Jackson Whole Summit ORG will bring you top interviews and analysis of course it's all about the currency market so we'll look into that euro dollar yesterday DATE below parody currently at 90 CARDINAL I think about One where's next to this is Bloomberg PERSON .
China GPE 's appetite for energy is enormous. The country consumes about a quarter of the world's energy supply 35% PERCENT more than the US GPE annually DATE . It's energy needs more than triple since the year 2000 DATE . That consumption has helped to feel astonishing growth But it's come at a cost. China GPE is the world's largest greenhouse gas cemeter. There is no way to tackle climate change unless China GPE reduces its emissions to nine CARDINAL oh. The countries reliance on fossil fuels is also a hindrance to its own growth and the well being of its citizens. It has a long standing pollution problem and it is also prone to outages that severely hamper industry All this has led the world's biggest polluter to take steps towards a radical transformation. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars If they move in a way that's anticipated another maybe 75 CARDINAL basis points the next one we don't know there's there's some discussion about that then it will indicate that they're on the way and I think what's most important now we've learned from history on this learn from our experience is the That can communicate what's objective is it would like to get back two% ORG inflation it needs to do this by a Montreal GPE policy that reduces inflation does reduce the growth the economy just inflation better off will be so that communication that stipulated about what the policy will be like is very important right now and I hope that does John when he comes to where we're at in the markets we're seeing extreme bullishness not so much today DATE but we've seen the rally just continue to build Over the years DATE for you what roller have financial conditions played and should the fed ORG be paying more attention to this or at least a loot to that fact in order to sort of bring down this bullishness that Well they have to pay attention to the the markets obviously what they're they have an impact on the markets and the markets have impact on them but I think that the more they are deliverative this is what needs to be done this is what's worked in the past this is how we can do it The the more convincing it will be I think that what the markets don't like is uncertainty about what's gonna happen to us more uncertainty today I think that's one of the reasons why the markets went down but the the more the default can indicate Needs to be gone. That's why these rules are so called Taylor PERSON or whatever you wanna call it or advantageous cuz it says, hey, we need to move a little bit further and hopefully, that will cure the problem a more rapidly than people expect. John when you wrote about this and not in 80 to you flagged the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a risk
You flagged the scenario right early deceleration risking the issue around credibility and then that the risk of of really disinflation causing a recession given perhaps from the policy errors before does that mean we're at a point where recession is going to be maybe a likely cure for this battle of inflation? I don't think Needs to be part of the cure what we we've experienced if we let in place and build up over time like it's in the 70s it was 7 years DATE of hiring. If we nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about their right to worry about cuz they've seen in the past but the more that there can be a stipulation, this is what we need to do. This is good Montreal. This will make the economy healthier. It should make us stronger growing economy as a That well recently we're not even faster and I think that's what we should emphasize. This is better for Josh PERSON . This is better for the economy. This is better. And also it would mention the world economy. We Each and all over the place right now. Well that was Stanford University Economics ORG Professor John Taylor PERSON now let's get straight to the Bloomberg PERSON first one is here's Leanne ORG 's hi Leanne PERSON hi friends saying Sonia Arabia's PERSON energy ministers has Opec and it's allies maybe forced to cut output as the future's market has become increasingly disconnected from fundamentals Prince Harmful volatility is disturbing the basic functions of the market Opec Plus meets next month DATE to consider production targets now British Airways ORG says it's scrapping about 5000 return flights in the coming months DATE that is after cancelling about 13% PERCENT Due to a staffage shortage and extended capacity curves at its London Heathrow ORG hub BA ORG says passengers who have been affected can rebook alternative flight or even seek refunds now Doctor Anthony Fauci PERSON who became a household name during the pandemic is to step down at the end of the year DATE the Us GPE infectious disease expert has run the national institute of allergy ORG and infectious diseases since 1984 DATE advising seven CARDINAL presidents on every major infectious disease outbreaks since the HIV crisis for 81 year old DATE says he's leading to pursue the next chapter of his career The US GPE has warned that Russia GPE 's preparing to launch intensified strikes against Ukraine GPE 's government facilities in the coming days DATE this comes after President Vladimir Putin PERSON called the car bomb that killed the daughter of an ally a quote dusterly crime Ukraine GPE is preparing to celebrate independence day tomorrow DATE which also marks Global PERSON news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries and Leanne Garrens PERSON this is Bloomberg PERSON of France GPE scene That's coming up next and this is Denver GPE .
Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . Estimate And the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Bloomberg Law PERSON At Jackson Hall FAC . Plus Opec on alert while crew games after Sadi Arabia GPE warns the Lions could cut production to support prices. Now we're just getting some UK GPE data shortly of course all of the talk is on that city group note yesterday DATE saying that in Hear the UK GPE if you assume that energy prices go much higher so the cost of living crisis is getting much worse inflation could hit some 17% a 17% PERCENT inflation given the back of For the moment. I mean, are we looking at six% GPE ? Are we looking at seven CARDINAL What does that mean for I mean, if you'll get mortgages and how much people, of course, are dependent on that we could see a real, a crisis in the UK GPE . Alright, we're just getting those figures out in the UK GPE , August DATE manufacturing, 46 DATE , forecast was for 51 So it's much much much worse than expected from manufacturing. Again, anything below 50 and we're at 46 DATE is a contraction. Now, August DATE services at PMI ORG falling to 52 CARDINAL . Five CARDINAL . That's a touch better than expected. The other story of course, weaker pound and you kind of just wonder what that endpoint Is that we earlier had some euro area PMIs. It declined that they declined for second month DATE according to new PMI ORG data just out. Now, they signal that fears of recession mail already becoming to pass as record inflation stops demanding weakness, sips into more and more sectors joining us now to break this down for us as Lizzy PERSON Bird and Lizzy PERSON . First ORDINAL of all, that UK Manufacturing ORG much worse than expected. Yes, and but you've still got growth in services and on the composite. In is the same as the euro zone looking ahead. They bloomberg PERSON economics reckon Going to get a recession later in the year you've already got consumer confidence
Economics reckon you're going to get a recession later in the year you've already got consumer confidence at the level that's consistent with a recession. Er and what I would also point out is just looking ahead. Er our economists reckon that the UK GPE 's recession Be milder than previous ones. Er because you've got healthy household balance sheets because we're expecting this fis Singulars from whoever is the next prime minister. But even you know let's try to saying that a recession isn't inevitable in the UK GPE . Our economy say that all she can do is cushion the blue cos it is coming. So the figures I I think will get worse later in the year DATE . Yeah I mean that city group note yesterday DATE It was like really terrifying reading. I mean, I sent to everyone at news saying like, oh my gosh, interest rates at six CARDINAL , seven%. It was like, wait, what does it mean for my mortgage? What's the So we've had a slew of data this morning TIME . Let me start with France GPE . It's slumped the lowest level since that destruction earlier in the pandemic. Er unexpectedly Germany GPE though has already has gone to contracted again but that was what we did Back because of it's comparative higher reliance on your Russian NORP natural gas. More broadly across the Euro ORG zone. There's contractions driven by manufacturing. But also you're seeing services like tourism grinding to a halt again because of the inflation impact. So a lot of data but it it heralds a Run into the end of the year DATE for your opinion economies unless surveyed by Bloomberg PERSON do expect a recession and again it's a headache The ECB cos they're expected to continue hiking rates even though the economic momentum is feeding. Yeah and it's all happening on currency. Thank you Lizzy PERSON Bird and there were the very latest on the UK GPE and European NORP economies. Now millions CARDINAL of ungodlands will vote this week DATE in the key election for the oil rich Faces WORK_OF_ART it's toughest test yet against a rejuvenate rejuven Opposition ORG . Central bank governor. Thank you governor for joining us in of course, Bloomberg PERSON surveillance today DATE . Now, if you look at what some of the, well, the region has a whole Particularly vulnerable to high food and energy prices. What can your Central Bank do to actually insulate Angola GPE ? Hi good morning and thank you so much for having us from Simpson PERSON to us Pleasure to be here but as far as inflation is concerned Angula PERSON as you know has been through very demanding program and how did the program here from outside Central Bank ORG we also come back in very restricted market policy to ensure that we have prices that are stable level and Around 27% PERCENT and today DATE is 21 DATE and we expect by the end of this year DATE to be below 18% PERCENT so the initiatives that I'm gonna have taken in the in recent past with all the Including the ones related with local traduction where we have seen us on an increase of food in the market. I think it's helping. So today I know that keeps on importing quite a lot. On a monthly DATE basis we are important something like 200 1 million Dollars MONEY of food. Years ago DATE , I mean your inflation target is 18% PERCENT for 2022 DATE How much you have to increase interest rates to make sure that you hit that target. You're okay cuz today we how are basic infrastructure ladies on 20% PERCENT and actually as inflation is falling we expect also interest rates to to follow the same trends so we are not under any sort of pressure to increase interest rates actually we're gonna do all the way around as the equation is falling we'll Offering more chances for a local production to keep on flourishing. So you're not expecting to to hike rights. I think your next posting meeting is September 26 DATE . September DATE yes and and we are not anticipating any increase on interest rates actually in the last monthly DATE meeting we made a decision to reduce Rates.
And we are not anticipating any increase on interest rates actually in the last Meeting we made a decision to reduce Rates and we expect that if things remain with the same trends and now we September DATE we may see again interest rates falling I know Angola ORG 's dead burden has been falling but I think it used to allow about 19 1 billion dollars to China GPE . There's now talk about to China GPE waivering some of their debt to certain countries. This is a goal or one CARDINAL of them. Well minister finances taking care of that when it comes to external that I think we can use about a goal as far from China GPE use that angle is diversifying it's sources of a finance and which is quite helpful but then it's the minutes you'll find it in our case is the one CARDINAL building where whether with a China GPE when To send about management not the central bank. Continue on the path to basically severe not several those ties but certainly diminish those ties with China GPE . Yeah I think that I angler has to be open and asked to keep on looking for opportunities but they initiative that a country has been done in the last few years DATE in some of the reforms that we're having to do it and the Central Bank of India ORG where under foreign exchange market for instance we remove all the Bottom X that we used to have in the country. So, today DATE , it is no longer require any sort of a licenses to import or expert funds into the country. So, it makes the markets more flexible, viable, and and again to us to have different an alternative ways to get finance. I think it helps. I have to say your currency is pretty incredible getting more than 20% PERCENT against the dollar this year DATE since early 2022 DATE which is one of the best performing currencies in the world where you continue to keep it free floating or will you try and saveguard some of your exchange reserves? No we will just let it be and the thing is that in the central bank we are concerned with reserves international resource management so we are our target is 10 months DATE cover of airports of goods and services we are Wrong 8 months of of coverage and so it's still below our target but we are not anticipating the need to intervene in the markets we just let the market function the way it is it's it's working just fine so today we go like we don't have people waiting for opportunities to make payments abroad Coming and seeking the central. Hey Facebook What's behind the strength of the Kwanzaa GPE ? I think of one is the monastery policy that we are conducting being respective. Cuz in the past few years DATE to have a very expensive monitor policy in Bangola GPE in all the public inefficiencies at the end of the day DATE and they need to additional finance. We're supported by the Central Bank ORG . Is no longer the case we have a far more respective more discipline actually once one or also has to be fair on the physical smile we can also see the efforts that authorities are making that but on our front far more discipline then you also and goal is an oil commander Help in the market Also increased and also one has to be recognized that all the initiatives to increase local production is also buying results so we are reporting glass which means that the currency has also taken a benefit of of those developments I'm gonna I know I wanna talk to you about banks and the banking sector. You have 25 CARDINAL banks in the country but I think five CARDINAL of them actually have the main market share. Are you expecting Eminem PERSON and consolidation in your country? Yes we do. Actually we have recently made a decision to include the mineral capital requirements in Angola GPE once again. It will come in force now in in October DATE . Yeah but also we are witnessing that are some of the banks is that need is not just the requirement for additional capital is that I know that as we form the finances And we have adopted most of our recommendations References so we both know
Adopted most of our recommendations that are followed by European NORP banks so that's this is one of the our preferences so with all of the with all those we forums is the market is becoming a full moon demanding for commercial banks in we are expecting a merges but also we have already I know I saw one CARDINAL right yep that's fine Biggest private lender who's next. The one to be listed this year DATE . It's happening. You were appointed Central Bank ORG Governor in 2017 DATE are you ready to go for another term? Well, yes. I'm I'm very happy with the work that we're doing here. We are satisfied with the results. But Keep on doing the job that we are doing the best we can possibly do Alright thank you so much for joining us Governor joining us for an extensive conversation ahead of the elections. Now, let's get straight to your Bloomberg GPE business flash. Here's the end gear. It's highly on. Hi, friends. Bloomberg PERSON has learned that Apple ORG plans to begin manufacturing the iPhone 14 CARDINAL in India GPE about 2 months DATE after the Seeking alternatives to China GPE as Administration ORG clashes with the US GPE government and imposes lockdowns across the country. Now Elon Musk PERSON has subpoenaed as long time friend for my Twitter PERSON CEO Jack Dorsey PERSON and his illegal battle with the social media giant muskers seeking to collect documents and To show that Twitter PRODUCT understated how much of its customer base is made up of spam and robot accounts dozens CARDINAL of people have now been subpoenaed by both sides ahead of that expected trial in October DATE forward is cutting 3000 CARDINAL jobs this week DATE to fund it shift towards electric vehicles the cuts will come Marily in the US GPE with some positions Eliminated in both Canada GPE and India GPE the CEO Jim Farley PERSON has repeatedly said the company has too many workers forward wants to spend 50 1 billion dollars MONEY to build two 1 million CARDINAL electric vehicles a year by 2026 DATE and Zoom ORG shares filed in US GPE late trade after it projected sales and profit for Estimate annual DATE sales going to about $four MONEY . 4 billion CARDINAL down from its production in May DATE of as much as four CARDINAL . 55 billion CARDINAL seems pandemic boom has called considerably as officers reopen and competition intensifies from Microsof Teams ORG . Front and scene. Thanks so much. Leah, now coming up, Chinese NORP banks are said to be employing unusual practices to inflate their low volumes. We'll look at what's driving that next this is Booper GPE . When I started I had no idea it was gonna turn into this. Empire. I don't have any investors. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed.
That was homeless at one CARDINAL point Did ORG n't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do my machine what should be done by hand Economics finance politics this is Bloomberg PERSON surveillance early edition on London GPE now in China GPE some banks are inflating low numbers as they struggle to make government demands to pump more credit into the economy let's bring in our chief Asia econom NORP Corresponded Hong Kong GPE so and good morning to you exactly what is driving this. So the back story here Francine PERSON is that in China GPE 's economy right now there's no shortage of credit no shortage of cheap loans and a government is encouraging the banks to get money out there into real economy not a problem is as the economy slows down the Thai NORP for borrowing among households and businesses just isn't there. So what are colleagues picked up is that in the case of some banks at least what's going on is out there lending out some money, some companies, and then taking Money back in at the same rate in the form of a deposit so it's kind of a money go around and speak to the idea that he's banks who are being told to lend that money just can't find can't find those customers who are willing to borrow it because the appetite is spending the best isn't there against the Up of course of the big real estate slowdown and the ongoing restrictions from COVID oh. So it does it does speak to just have problematic Chinese NORP finding it to get policy traction in the economy and ensure that they actually get some momentum as we go deeper into the second half of this year DATE . So, I mean, this is not without risks. What are the main ones under Well, I think the problem continues to be francing at what point does the economy actually hit a bottom in China GPE ? The narrative had meant to be that July DATE and August DATE were supposed to see a turnaround, putting things on a better, even Last week DATE for the month of July DATE then of course we did Central Bank ORG cutting interest rates for the first ORDINAL time since January Bringing down mortgage lending rates but all of these steps speak to urgency among police makers but they don't speak to a turnaround in China GPE 's economy. I think that's what the big concerns right now from seeing that there is this liquidity shop that the The availability of credit, the issue is about why people aren't borrowing and that's why there's a call for or there's a sense that it will need to be deeper and bigger policy pivot. Maybe among on the real estate side or maybe on the call with oh side to really jump start and rev up activity amongst households and businesses in China GPE in the months ahead DATE . I mean could this just be caution and planning ahead so people are being very careful it could actually suggest a credit crunch. Well, look as old as a sense of caution in a slow economy Francine PERSON . You are right. China GPE has a very high household savings rate for example. So, it's not like there's AA liquidity or credit funds like that in China GPE . But at Same time the problem is that policy is struggling to get traction and every time the government unveils any measure it's kind of met with either another reversal on the covidier side of things we've seen ongoing eh recent lockdowns and restrictions of course on Hannah Island LOC which you know side kind of consumer confidence and of course in the real estate side despite Steps that they have taken and trying to bring in an interest rates and getting money into the system we continue to see a downward spot
Kind of consumer confidence and of course in the real estate side despite the steps that they have taken and chance of bringing an interest rates and getting money into the system we continue to see a downward spiral inactivity there so the point is None of the believers the government of polls so far have been enough to turn things around and that's what's worrying economists we saw those downgrades from Golden Sox ORG and the more last week DATE maybe sub three% growth now for the year DATE that's a fairly shocking rate considering what people are looking for to start of the year so I think Vacation is not a we will have to see a step up for the aggressive step up and policy over the coming months DATE if we are to see stabilization of growth that is expected ahead of the party congress ORG later this year DATE but the point is we haven't seen it so far the economy hasn't stabilized and that's what's A lot of observers watching this. And thanks so much as always for the wisdom and say to our chief of Asia LOC I can obviously respond in the current now coming up Jack Dorsey PERSON . We'll bring you the latest on the Twitter PRODUCT takeover battle. That's coming up next and this is Bloomberg PERSON . Do any kind of business in this country. There's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming GPE can be that venue for blockchain enterprise for crypto This trend is coming. It's not going to stop. Is more of a small town that's growing into without Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. So get to seven% in the coming months DATE . Where are the job cuts to come from? The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Economics find those politics. This is Edition of Francing WORK_OF_ART like we're here in London GPE . Peter PERSON and his defense against Twitter ORG 's lawsuit to make him complete his proposed 44 1 billion dollars MONEY buyout. Now, the Twitter PRODUCT co-founder has long been a friend of the world's richest man. Well, Dorsey PERSON stepped down as Twitter PRODUCT chief executive, last year DATE , and has since been an Get a booster of masks.
Co-founder has long been a friend of the world's richest man. Well, Dorsey PERSON stepped down as Twitter PRODUCT chief executive last year DATE and has since been an energetic booster of mosques FAC bid for the company. Now, he tweeted in April DATE that mask was a singular solution I trust Take over not for more. We're joined by Bloomberg ORG . Quick takes Alex Webb PERSON . Alex PERSON , first ORDINAL of all, are you still friends if you get subpoenaed by the other one? It's hard to see how. It seem pretty clear wanted or wants Elon to acquire Twitter PRODUCT . Elon doesn't want to acquire. Invention in the middle of that. Yeah but do we know that he still wanted to acquire it once Elon ORG pulled out like what role has he played? Unfortunately Darren PERSON is the elonch has far more on Twitter PRODUCT than does Jack Dorsey PERSON and Jack Dorsey PERSON was one CARDINAL of the co-founders so no we we don't know Jack Dorsey's PERSON thinking I've been treated to see what becomes public from this subpoena but from the session because we some fascinating conversations on the earth LOC . So do we have any insight into what Elon ORG mask is trying to find out with the subpoena? Whole case is built around this idea that Twitter PERSON overstated the number of accounts. There's also to say understated the number of accounts that were bought and presumably then he's trying to get data or admissions from Jack Dorsey PERSON that they knew that it was more than that. But I think ultimately the key thing here is Twitter PRODUCT when it declares how many accounts it has and what percentage of those accounts are bots it doesn't say the number of accounts total it says the monetizable daily DATE active users so by definition a bot is not monetizable so therefore it's probably excluding a bunch of bots already from that calculation and then perhaps it thinks it might have not manage Sauce out five% of those. Really that relevant about why he's not buying it. Well, not necessarily no because if you look at the and Made this case very compellingly that Twitter PERSON in their filings they say we think there's this number of bots we might be wrong if there's a better way of calculating it we'll be delighted to hear it therefore it isn't necessarily something that should be enough to sty me the deal or the Meaningful but you know Daily active users and monetizable daily DATE active users are not part of January DATE accepted accounting principles is something that Twitter PRODUCT kind of is a metric they've invested on their own and therefore how they can be wrong is hard to tell yeah what a story I mean Unless you're very bored. I mean the life of billionaires is very different perhaps. Billionaires is very different. Alex web there with a very latest on Elon Mask PERSON . Now, Bloomberg PERSON 's around. It's really audition continues in the next hour TIME . Let me learn headlines in New York GPE and Edwards ORG is here in London GPE . They'll have a full round of what to expect from Jackson Hall FAC That Jay Spall PERSON speech on Friday DATE then we look at Euro dollar I know there's quite a lot of talk of course about equities but if you look at where the big whip sign We'll look at that. Hey When the price of anything goes up the consequences reach far beyond what you'd expect but perhaps most of all when it comes to food. In 2010 DATE .
Of all when it comes to food In 2010 DATE surging food prices help spark the Arab Spring lives were lost regimes fell and the consequences are still with us. Once again food prices are rising and fast Energy cost broken supply chains and surging demand were just some of the factors that have driven food prices to their first ORDINAL record high since the Arab Spring EVENT . And that's all before a war between two CARDINAL of the world's biggest food producers. Ukraine GPE is called the bread basket of Europe LOC and taken with Russia GPE the two CARDINAL account for about a quarter CARDINAL of global we trade they produce more than half CARDINAL of the world's sunflower seeds and oil nearly 20% PERCENT of the barley Now, throw in rising energy prices and processing transporting even refrigerating food gets more expensive. Plus, fertilizer production is extremely energy intensive. Less fertilizer means lower prop field and prices rise even more. Pandemic revealed how complicated in fragile global trade systems are. Global agriculture perhaps even more so. Unlike metals for example, the food goes bad. Encrops take months DATE to grow near vulnerable to unpredictabilities like the weather. Food prices will be felt everywhere but the poorest countries in the world will be hit the hardest. And as all these factors compound, the real fear is that record high will lead to record high and ultimately to a global food crisis with vast consequence. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now And everyday English LANGUAGE in the command line. Compare financials Find people analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. In terms of what happens politically and what the economic fallout is. Right now Central Bank's ORG everywhere will take anything they can get it's almost like a sort of a hawkish sandwich around this this mirage of of disinflation that we see starting to dominate the narrative Playing a game where the market Hey Facebook they're not always rational and they're just sometimes need to be given the alarm bars. Matt Miller PERSON and Kaylee Lines PERSON . It's 10 AM TIME in London 5 AM GPE in New York GPE and 5 PM TIME in Hong Kong GPE our top stories today DATE the federal reserve ORG overshadows the markets European NORP stocks and US GPE equities waiver over worries about more money Economic activity falls for a second month in a row DATE record inflation is sapping demand and Donald Trump PERSON reportedly has more than 300 CARDINAL classified documents at his Florida GPE estate some of those documents are said to have come from the CIA ORG and the national security agents Plenty of stories to dissect then Kaylee plenty to get the details on with our team shortly but in terms of weather markets trade European NORP markets and US GPE features suggesting a little bit more optimism after the the devastation of yesterday DATE Asia LOC though that was a different It was indeed and of course, the day DATE in the US GPE and Europe LOC is still young. So, a lot could change over the coming hours TIME but in Asia LOC , as you will later to, it was decisively risk off. We had stocks lower across Japan GPE , China GPE , Hong Kong GPE , all together, taking the MSI Asia Pacific LOC Index down for Chinese NORP developers those property stocks which have gotten what should be some supportive news in the last couple of days DATE around more loans to the sector Trying to prop it up also couldn't get a bit those were down about seven CARDINAL .
What should be some supportive news in the last couple of days DATE around more loans to the sector really trying to prop it up also couldn't get a bit those were down about seven tenths Percent PERCENT when it comes to our Bloomberg PERSON intelligence index of those stocks. At the same time as as you were saying Anna, of course, we are paying attention to the central bank story. The It's highest level and about 2 months DATE finally in foreign exchange I would note you are seeing some Performance from the Japanese NORP yen today DATE stronger against the dollar by nearly two CARDINAL chance of one% ORG At 137 26 that is still very weak relative to history creedy but nonetheless it show There's a little bit of a bit for that haven't asked it out there. Well, speaking of a bit, I think you're really seeing that in the S and B 500 features as well but now, with that much conviction, take a look at this. The S and P features up only two CARDINAL tenths of one% ORG . I mean, it's pretty natural to see a little bit of green on the screen after the math of sell off that we saw yesterday DATE and of course, Friday DATE as well and literally lead by those big cat names. So, to see that reversal, once Comes to no surprise at least when you're looking at it from technical level but once again no real conviction at least when it comes to early trade here when looking at features and I would say Conviction in the bond market either you're looking at a 10 year DATE yield at about three% GPE with no real change in in the move it also no real change in the dollar even though it is hovering around Highs Anna PERSON and this is going to be really significant as we talk about the ripple effects that you start to see across us at the end of the day DATE a bitcoin at that risk sentiment indicator well it's shining bright bright green up one CARDINAL . Seven% this Anna. Pretty mixed picture Chrissy WORK_OF_ART here for European NORP stocks European NORP equity markets kinda divided whether you look at the set to break down where we're kind of eating divided between the gainers and the losers or the geography here the Dax the footsy nearby doing okay a bit Negativity coming through in Spain GPE and in the UK GPE . More on that in just a moment. The UK GPE market then down by half a percent PERCENT . Yes higher energy prices. It's giving a boost to some of the energy names in London GPE . Er but then we've got some negativity surrounding some of the other heavy weights in London GPE . Such as the drug sex which is where. Er this is the Picture and this is lifting some of the oil companies here in in Europe LOC . I one. Two%. The sound is there saying that they might have to come forward or Opec Plus might have to consider cutting production. So is the disconnect they describe between fundamentals and what oil prices are doing which is interesting in the context of all the calls we've had from Western leaders to increase oil production in months DATE gone This is the euro down below one once again so below parody oh spot 9932 CARDINAL PMI for the Euro FAC zone economy it's not just Germany GPE now it's France GPE also it with a number for the composite which is below 50 which indicates contraction but we saw the euro actually bounce off earlier losses as a result of the German NORP manufacturing number not being quite as bad as anticipated what was worse Lizzy PERSON Bird An estimate which was much higher than that. So, we might expect to see some weakness in the pound, not so fairly resilient, one 1769 CARDINAL , after a lot of recent weakness, of course, and this is the reason we see the Danish NORP market on depression. Five%. The heavyweight logistics shipping business. We're seeing sissy actually move this stock and the rest of the sector to a cell. They see an end to the exceptional shipping rates that we've seen in in recent months DATE , Kaylee ORG . Yeah, and of course shipping and the supply chain isn't focused as we see those strikes at Felix Sto PERSON in the UK GPE and so we'll continue to watch that story as well as a number of Retail earnings which will continue with Macy ORG 's reporting second quarter DATE results before the market opens we'll also be paying attention To energy German NORP chance or Olive Schultz ORG is in Canada GPE to discuss closer energy cooperation with Prime Minister Justin Trudeau PERSON they will hold a news conference at 6:30 PM TIME : New York GPE time plus we'll hear from Minneapolis GPE fed ORG president Alumni club PERSON and finally in politics Florida GPE and New York GPE will both be holding primaries ahead of the November DATE Elections. Yeah, Kaylee PERSON and of course, in the near term though, what we're watching is going to be all about the federal reserve stocks down near the lowest levels of the month DATE as investors brace for hock From the Fed ORG at Jackson Hall FAC joining us now is Cassenia GPE Galushko a Bloomberg PERSON equities editor cuz send me a thank you is always for joining us what is the stock market reacting to Well it seems like this stock market is finally waking up to the risk of the hockey federal reserve ORG so the rally that we've seen since July DATE low
Acting too. Exactly. Well it seems like the stock market is finally waking up to the risk of the hockey federal reserve ORG so the rally that we've seen since July DATE lows which has taken the SMP 500 near bull DATE market Mask PERSON that actually rallied more than 20% PERCENT from lows This rally is at risk because of the Jerome PERSON powers upcoming speech at Jackson Hall FAC where he's supposed to reiterate the hockeyness of the Federal Reserve ORG as it fights as surging inflation Because any another factor of the markets that we need to focus on is the dollar dominance and we've certainly seen dollar strength as such a big thing. I read one of our pieces today DATE on the Bloom Terminal ORG at which which suggests that it is foolish to fight dollar dominance that must be a sentiment shared by many. Yes the dollar hedge is really one of the most popular trades right now ahead of Darren Powell's PERSON speech this coming Friday DATE I mean it is a haven instrument and it is one of the most popular ways of defending your portfolio at What's also not helping the sentiment is the fact that the euro is really weak at the moment and that's it happening because of the weaker economic data that we saw earlier this morning TIME and also because of the looming energy crisis which is really weighing on the sentiment You are being acid. So the fact that some of its biggest peers are under pressure and the same goes for Asian NORP currencies. Is really helping the strength in the dollar. Absolutely an expectations for Fred PERSON policy have a huge hand in that Bloomberg PERSON 's Cassanya Galuchko PERSON thank you so much and speaking of the Fed ORG later this week DATE surveillance will be heading to Wyoming GPE to Jackson Hole FAC for the Annie Wilsonposium Tom John PERSON and Lisa PERSON will be kicking off that Coverage on Thursday DATE . Let's turn back to the economic data out of Europe LOC now. The latest PMI ORG data for August DATE provides Comfort EVENT for the state of the European NORP economy. French NORP output is contracting for the first ORDINAL time in a year and a half DATE mirroring the trend seen in Germany GPE . Joining us now to discuss is Lizzy Birdin PERSON , our EMEA ORG economics, and government Correspondent Lizzy PERSON what exactly does this data show us Well Kaylee PERSON let me walk you through it cos there is quite a lot. France GPE has unexpectedly contracted Germany GPE has continued its construction but we saw that coming because of it's reliance on Russian NORP natural gas And then across the euros own more broadly you saw this construction driven by manufacturing but it's also in Like tourism because of the impact of inflation. So it heralds a difficult end to the year for the European NORP economy. It our economists and economists surveyed by Bloomberg PERSON do see a recession on the horizon. And it's a head For the ECB because of course it's continuing to hike interest rates despite this momentum coming out of the economy yeah a lot of people watching the energy story and asking just how weak the Arizona GPE economy gets there through the winter DATE there's a lot of people asking similar questions about the UK GPE and that manufacturing PMI ORG number today DATE it's about certainly we'll give a lot of people something to think about yeah the UK GPE 's still in Terrory but manufacturing took a real blow really it's only a matter of time until the story catches up with the UK GPE you've already got consumer confidence here at the level Assistant with recession. Er I should note though our economists are saying that a recession in the UK GPE will be milder than previous ones because of healthy household balance sheets. Because of the fiscal stimulus we're We're expecting from whoever comes in to number 10 CARDINAL but still while is trust is saying that recession isn't inevitable in the UK GPE Bloomberg GPE economic says she can only question the blow a rec Is coming. Lizzy PERSON Burden we thank you as always let's go to economics in the UK GPE to politics right here in the United States GPE the US GPE government Recovered more than 300 CARDINAL classified documents from Donald Trump PERSON since he left office according to the New York Times ORG that includes papers returned in January DATE a second ORDINAL set given to the Just Department ORG in June DATE and the document sees by the FBI ORG at Mar a Lago Joe Matthew Bloomberg PERSON Washington GPE correspondent joins us now from DC GPE for more Joe PERSON walk us through what we know what's the latest The numbers are really the news here creedy as there's so much we still have yet to learn about what exactly the Department of Justice ORG and FBI ORG were looking for but this scale of this operation is giving us Sense of why they sought this search warrant to begin with and conducted the search the way they did the New York Times ORG reporting the National Archives ORG indeed found more than 150 CARDINAL classified documents in that first ORDINAL batch of material that was From Florida GPE in January DATE including importantly here documents from the CIA ORG and the NSA ORG the sensitive nature of what they found and Donald Trump PERSON
Documents from the CIA ORG and the NSA ORG the sensitive nature of what they found and Donald Trump's PERSON failure to comply with repeated request to hand over more documents is We should add that reports are surfacing now as well that investigators want access to more of the surveillance videos at more allowed to see exactly who was able to access the areas the document Stored in and and when and why meantime Donald Trump PERSON has requested the appointment of a special master to review the documents that were seized it is unclear Pretty if that'll be approved. Okay really fascinating developments there Joe PERSON let's pivot to the latest on the attempts to revive the Iran GPE nuclear deal how much closer are we? It's a great question. We understand that some gaps remain but the report is of progress here. We heard from the state department yesterday DATE spokesman ned price says that they're actually seeing some progress in terms of some of the deal breakers if if you will that Iran GPE has pulled back from we should note that Iran GPE delivered it's response to a framework drawn up by the EU ORG last week DATE we're waiting now on the United States GPE which says that it's still looking Iran GPE 's reply here one CARDINAL thing that we know has been taken out of this and encouraging the US GPE government is Iran GPE drop this demand that the US GPE removed the Iranian NORP revolutionary guard from its list of of terror groups that's not gonna be on the table here so it looks like we could have some movement it's just unclear exactly what the sticking Reply PERSON was reasonable so let's see what the administration here in Washington GPE has to say Alright well we'll look forward to your coverage of it Bloomberg GPE Joe Matthew PERSON in Washington GPE thank you so much and of course you can listen to Joe PERSON every weekday on his radio program sound on that's at five CARDINAL Eastern NORP time on Bloomberg Radio Now ORG let's get back to the markets and take a look at some stocks moving in pre-market trading here in the US GPE and I have to begin with Zoom PERSON . Company we are very very familiar with due to the pandemic but as From the pandemic and people go back into the office companies maybe wanna spend a little bit less on this kind of software due to the softening macro economic environment you have zoom cutting their revenue forecast and also missing expectations from analyst it actually Reported it's slowest quarter of revenue growth ever as well so all of that together taking the stock down about 10% PERCENT in early hours TIME it's a Better ORG earning story though for Palo Alzer Networks ORG . This is a big cyber security company. It beat on its quarter Cyber security world it is up about eight and a half percent CARDINAL and Also wanted to check on AMC ORG of course one of the meme stocks that has seen a lot of air come out of it over the last several days DATE this is actually a stock down 50 Percent PERCENT over the last four CARDINAL sessions of 42% PERCENT decline coming yesterday DATE As it's preferred stock ape began trading but you're seeing a little bit of a rebound coming into the shares of it as well as some of the other meme trades out there this Fabulous PERSON piece on meme stocks and where they had coming up on the program though Kaylee Tom PERSON joins us head of investments at net group investments we'll continue to count down to the Jackson Hall Symposium ORG of course and Harvard ORG status as the richest school faces an oil which contender in the University of Texas ORG our big take looks at how crude and And it's Tuesday DATE so don't miss This is going back.
When I started I had no idea it was gonna turn into this. Empire I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand The difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Bloomberg Law Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving This is Bloomer Surveillance ORG early edition I'm pretty gupto with Kaylee lines in New York GPE and Anna Edwards PERSON in London GPE Matt Miller PERSON is off today DATE we are simultas on TV and radio we've been seeing this sentiment really take it on the chin across the board the stock market even treasuries starting to see a little bit of a sell off and come on he's of course taking it on the chin but it all kind of points to one CARDINAL asset Hovering ORG at record highs. I've already audience we are looking at a chart here of the Bloomberg PERSON dollar index and the icy US GPE dollar index. You can really see this massive Acceleration ORG going into 2022 DATE it's almost going I don't wanna say vertical but it seems to be in that direction The question though is the margin of the move how much of it do you For a lot of investors is actually outperforming some of your core investments. We're gonna She joins us now from London GPE Lynn thank you is always for joining us let me put that question to you What do you do if your macro heads, your dollar trade, actually outperforms your stock trade, your bondre, your commodities trade. I'm sure that's the situation a lot of people are finding themselves in right now and I think you know the chart just really speaks to the fact that the dollar is the one CARDINAL big trade that's working in markets right now and it's consistently been working and You know, it speaks to, you know, the state of the global economy where the US GPE is relatively stronger. And your seeing weakness around Russ PERSON the world. A euro weakness is also a trade that if you've been batting on that To continue and in some ways it makes a lot of
A lot of people see it coming weaker from here so you've got plenty of forecast I know no more Morgan Stanley ORG are all sort of expecting the weakness in the Euro MONEY to continue and in some It makes a lot of sense with the gas crisis continuing to get worse day by day and and the winter is still ahead of us. That is absolutely true and it felt like winter may have come for the equity market over the last several days DATE when it seems that the pain is Is it a breather in the selling or have we actually seen just the end of the rally? Hmm I mean I think maybe one CARDINAL way to look at it is the nervousness before the Jackson Hall FAC speech and you know just the anticipation for what that's going to bring I think a lot of people Expecting a hawkish turn and more you know whatever it takes to get inflation under control and I think in that environment people are very hesitant to put on more risk okay yeah we'll wait for Jackson Holden PERSON then thanks very much Plenty LOC there on the stock sell off that we've seen and dollar strength. No one covers the world like bloomberg PERSON . In the coming months DATE . Do you see that coming? Battle between Taiwan GPE and China GPE . To come from. Resources The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it And our point was Wyoming GPE can beat that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this in Wyoming GPE . We wanna make sure that people understand especially in Wyoming GPE but as United States GPE of the whole, this trend is coming. It's not going to stop. Cryptocurrency version of Silicone Valley FAC . Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. Are on Bloomberg PERSON . Going into September DATE that is 50 CARDINAL basis points that's where I've been since the last meeting but I have an open mind about whether 75 DATE is going to be necessary 5075 doesn't just depend on a data point even an important one like the CPI I like to say that we're data dependent we're not data point depend
Data dependent we're not data point dependent This is Bloomberg PERSON surveillance early edition. In New York GPE and Anna Edwards PERSON in London GPE , Matt Miller PERSON is off today DATE . Now, keeping you up to date with news from around the world. Here's After the products initial release out of China GPE then that narrows the gap between the two CARDINAL countries but it doesn't close Supply ORG chain that the company's high standards for secrecy complicated it's efforts in India GPE . Life expectancy in new york GPE plummeted by 3 years DATE in 2020 DATE the CDC ORG says that was the biggest decline among all states in the first year DATE of The pandemic. Residents of New York GPE are expected to live to just under 78. The Highest ORG life expectancy in the country. Overall the US GPE life expectancy plunged by one CARDINAL . 8 years in 2020 DATE the biggest drop since World War EVENT two CARDINAL . The US GPE warns that Russia GPE is about to launch a new round of attacks against Ukraine GPE government facilities. Ukraine GPE 's preparing to celebrate its independence day on Wednesday DATE . President Vladimir Zalinski PERSON says that Russia GPE quote may try to do something particularly nasty. And hedge funds are unleashing record bets the federal reserve will stick to his hockey script at Jackson Holt FAC the group has collectively placed a big short across features for a key overnight rate that move In line with the feds benchmark. When he speaks at this week DATE 's symposium. So, clearly, all of us are waiting for that speech from chairman pala around PERSON 10 AM Eastern time TIME on Friday DATE and yet we are seeing really decisive moves Repositioning in the market in anticipation of it. People aren't just waiting for what he has to say. And you know what? I think it's so fascinating here is that this is a hedge fund trade by the way. That is the exact opposite of the way the Interpreted the last comments that you really saw this is the devilish NORP pivot that it seem like the stock market was rallying off but the end of the day DATE it's actually Turn around that Anna this seems like people are saying well actually not only are they gonna be not devished they're going to be even more hawkish than expected given those looser financial conditions Yeah I mean the Jackson Hall Symposium ORG developed a reputation over years gone by didn't it for being on opportunity for the feds of reset market expectations but Fed ORG fix the market has the right expectation then maybe it doesn't create so much news but there is a lot of expectation then pretty deal point that we will see something walkish so I guess at one CARDINAL way that things could surprise is if we don't quite get a level of walkishness we anticipated where would that leave markets and their long dollar positioning we'll put those questions it's on it can join us shortly head of investments Net group investments. Expecting pow to deliver as his key message. We'll have more on that shortly. This is going back. Today DATE what is the biggest?
Today DATE what is the biggest challenges for general dynamics and what are the biggest opportunities? I think in in any business the challenges are solving complex problems that come to you You know the the problems that come to me and my senior leadership team for for resolving tend to be highly complex and nettlesome so you're ability to solve those complex problems or an important element I think of the value that we add. To the company. And then I think opportunities, you know, you always wanna make sure that you've gotta create enough mind, and open enough mind to be able to see around square corners. What am I missing? You know, the Y ORG questions are really powerful. Why are we not doing this? Or why are we doing this? I ask those questions a lot In the answers. You can sometimes tease out some real opportunities, some hidden things, but thinking creatively about Opportunities PERSON and problems. It's really important. And what about the industry generally? I think they have big challenges now as the defense budget probably comes down a bit. So I think that we are all responsible and and we have an obligation. To find the latest and best technologies That we can for our customers and deliver them the most cost effective manner we can and I think that that's a challenging and opportunity for all of the big defense companies Please explain by surveillance earlier this year DATE is what you need to know. The federal reserve overshadows the markets. European NORP Economic activity falls for a second month in a row DATE recording is sapping demands and Donald Trump PERSON reportedly had more than 300 CARDINAL classified documents at his Florida GPE estate some of those documents are set to have come from the CIA ORG The national security agency. Pretty good Right in New York GPE of course Matt Miller PERSON is off today DATE and Chris European PERSON equity markets kind of moving around a little bit this morning. A bit volatile but really waiting for developments later on this week DATE . I completely wait and see mode and I would say that actually nothing is really changed in the last 30 minutes TIME since we did our last market check. You are seeing features higher to the tune about one 10th ORDINAL of one% ORG . At once again, this is pretty natural. I've just given the math That we saw yesterday DATE and of course on Friday DATE as well to see a little bit of a green on the screen but once again not a ton of conviction Future training like is it up only 110 CARDINAL to one% ORG and that's not just a stock story you're singing on the bond markers well 301 CARDINAL on the 10 year DATE yield doesn't hover around that key three% level ahead of Jackson Hole FAC and when do we actually see that perhaps psychological level not That rolement anymore. It's gonna be the question I have for a lot of our guests that coming up just shortly. Also, the Bloomer Dollar Index which really is taking it seems like the queue of the bond market. Still higher hovering near those July DATE highs which by the way are record highs for the Bloomer Dollar ORG in this but today DATE , once again, no real conviction. That might explain why you're perhaps not Bitcoin of course up about nine CARDINAL tenths of one% ORG still that 21 1000 CARDINAL handle Yeah and we will be talking about that you and I later today on Bloomberg GPE crypto creedy so we will definitely watch those moves and watch out that is translating into crypto related equities in pre-market trading as well because as you're seeing bitcoin getting a little bit of a lift these stocks are getting so much needed relief the likes of Coinbase PRODUCT up about two% ORG and micro strategy which is Bed bath and beyond is down more than 60% PERCENT in just the last 3 days DATE but it's rallying by about five CARDINAL . Four% this morning TIME .
Of life coming back into the meme stock trade bath and beyond is down more than 60 CARDINAL In just the last 3 days DATE but it's rallying by about five CARDINAL . Four% this morning so no it doesn't undo a lot of the losses we have seen in recent trading sessions but nonetheless a bit of a breather coming in and finally Wanted to point out to Zoom PERSON this is a fundamental story given it reported earnings after the bell cutting it's reven Forecast PERSON as businesses just aren't needing to get Zoom PERSON as much considering a lot of people are back in the office that pandemic are a peak of zoom which we all got so used to maybe is a fading story and the stock is fading this morning TIME as a result down about 11% PERCENT before the Belliana ORG . All those remote meetings Kaylee PERSON that we learned to know and love in some cases and let's have a look at what 600 CARDINAL pretty evenly divided between those sectors Meaning PERSON those that are losing geographies that are gaining those that are losing not moving anywhere in a hurry it seems on these European NORP markets today we have seen weakness in data coming through as a big theme and that applies to the euro and the pound we're watching both of these in response to PMI ORG data the European NORP PMI data told AA negative story contraction for the Eurozone ORG economy at least according to this data set for the second ORDINAL In a row it's not just Germany GPE it's also France GPE now in contraction but we do see the euro actually off earlier though it has been Threatening to go below 099 CARDINAL . Little bit earlier on in the European morning LOC but the Manufacturing pier my wasn't quite as bad as expected I'm clutching its drawers but that's at the edge of the euros for the pound one 1765 DATE it has fallen quite a bit recently but now fairly steady at that one 1765 DATE level despite the fact we saw a 46 CARDINAL print for the manufacturing PM TIME I added the UK GPE a shortage of labor and an inability Because of the the disconnect that they see between what's going on in the economy concerns around Dominating there despite all of the calls we Production. Yeah, talking about that difference between the physical market and the future's market and how it seems that futures are really underestimating the tightness of capacity constraints that are out there. So, definitely a story to watch. We also, of course, are watching these equity markets and joining us now to discuss them as Tom Kadock PERSON head of investments at Ned PERSON group investments. Tom Have PERSON seen some pretty market rally if it was one CARDINAL over. I'm not sure but over per say but yes clearly what we're seeing at the moment is oscillating markets That are playing very much longer theme of you know how tight and how hawkish are Central Bank ORG is gonna be and that's what we've been seeing that's what we saw yesterday DATE fortunately from our perspective we're we're investors not traders so we can look through some of this market noise but it's Very much playing off this narrative of of And hawkishness. Of Central Banks. Okay and but it isn't just noise. We're seeing interest rate hikes for longer over if we're seeing bigger interest rate hikes than than had previously been anticipated so with that in mind what are you looking for at Jackson Hall FAC we always expect a lot I I wonder if this is going to be one of those years that materially delivers or will we get AA sort of holding statement from the fed? Think it's gonna be a holding statement. I mean, it just doesn't make sense for for pow, for the fed ORG , to be making a very, very strong statement in terms of horcaness, when realistically, it's gonna be driven largely by the inflation print that comes through. They've already made that indication. So, I think the Jackson Holt ORG is gonna be a holding statement or at least keeping options open. Ahead of the next inflation re numbers which are gonna drive very much the expectations around base rates. We'll just talk a little bit about capital flows here. We talked about the fundamentals with Jackson Hall ORG in terms of capital flows. I think it is a foregone conclusion For a lot of investors here that ultimately the pain that you're going to see in Europe LOC is just going to get magnified come the winter season but I'm curious what Means for the US GPE stock market doesn't that mean that if the rest of the world is struggling the the immediate investment is to buy American NORP so why isn't that happening? I mean I I would broadly agree with you and and positioning has changed over the last 6 months or so and DATE
Is to buy American NORP so why isn't that happening I mean I I would broadly agree with you and and positioning is change over the last 6 months or so DATE on the back of this. We've got particularly particular concerns around Europe LOC where I think some of those challenges that you've just said could you particularly acute and would favor the US GPE market which is great a breath Absolutely has inflation been a major issue but we've started to see signs of that peaking Or at least some early signs of of peaking. We've shifted our positioning to more of a quality stands over value or indeed growth but particularly also focused more on on the US GPE where we would we would expect to see out performance. Is the dollar the best hedge Tom PERSON ? I suppose the bitcoin. Absolutely. I I do think I I think it probably is. But we've seen a lot of strengths coming through from there as a European NORP and Bester PERSON . It's been a good place to be in in terms of in terms of dollar but yes I think you probably is. And real assets Tom PERSON you might mention in your notes how do our conversation about the importance of real assets and how they're actually quite a conviction play for you including a commercial property I mean eh for for the novice you think about Rising interest rate environment and not sure what that does Or at least you you know that it creates headwinds. What was the what's the lure of these of real assets right now? Got multiple multiple attractions in here and it is looking for where to put your money and we've softened our position on equity significantly. We do have a preference for for real assets or assets that have a strong and reliable Compounding income generation capacity plus some inflation protection which is something that we've all been looking for for some time now but up and only rental reviews for us few mentioned commercial property if you if you're selective being able to still buy into that reopening trade has been very successful for us and I think Got some way to go. Infrastructure or indeed renewable energy. Where we can get some protection from that rising energy price where you've got a direct linkage to electricity prices. Feeding through into valuations. So we've been looking very much for a degree of stability. A lack of cycl In some of those positions as well as then that inflation protection coming through. Tommy PERSON mentioned that the dollar is still the macro hedge to go to. You also said that you were overweight US GPE stocks but I'm curious. Isn't that a contra Retrade. No no don't I don't believe so this is you know we're talking relative in terms of our positioning there so we've got the positions there we partially head some of that but broadly speaking it depends what your base comments he is so we're coming in to get US GPE exposure we've also got some of that dollar hedge coming Actually in our in our 5100 CARDINAL positions as well. Tom PERSON thanks very much. Thanks for your time. Tom Kaddock PERSON of Ned Group ORG investments running is there with thoughts on the market. On a fairly quiet day DATE in markets but gearing up a course for Jackson Hall later on FAC this week DATE . It is After all coming up on the program though a lot to talk about when it comes to laid market stress we'll talk about UK GPE strikes and the supply chain Kate Jennings PERSON joins us logistics UK GPE policy direct to the focus of this week DATE of course is focused on the portal focusing on the east coast LOC of England GPE one impact is that shutdown happening on the economy this has been back What do you think of when you think of a battery?
What do you think of when you think of a battery For most it's what we used to power devices for both work and play and maybe even your car Over the past few decades DATE , they've gotten way more powerful, long-lasting, and affordable. But all of this is just a prologue to what the next batteries are going to do. As we drive to a increasingly renewable power driven grid, we also need to be able to store energy and release it later to cover those periods of weather intermittencies that are driving this new grid that we're in. It's a multi-trillion dollar MONEY opportunity It's imperative that we figure out the solution here How we store energy on a massive scale is in many ways the central challenge of the fight to stop climate change. Ask me all the time. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. The people that I would like to have managing my money. At the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Please a kind of issue for the logistics industry and fright industry and shipping sector. The UK GPE as Lizzy PERSON mentioned feeling so is the UK GPE 's largest container port if you do reroute freight away from its traditional Travel ORG plans, etcetera. There would be a cost, a most cost will be cost on to Began an 8 day workout on Sunday DATE halting the flow of goods through the UK GPE 's largest gateway for containers imports and exports joining us now is Kate Jennings PERSON policies director at logistic UK GPE . Kate PERSON , help us understand what kind of damage these does to the UK GPE economy and the limits to that damage actually because of the types of things that we move around the world and containers and and the other options that ship has then faced. Yeah so so first of all I suppose the most important thing is that we hope the port will continue negotiations with the unions cos the best thing that could happen is that they reach agreement. But for a container port like Felix PRODUCT though the majority of goods are are not they've just in time they're not time sensitive so what I expect has happened already is that the port would have brought forward some deliveries they may have pushed back some deliveries and they can be roots to other ports so for example in the Hey you have London GPE gateway you have Southampton NORP you have Tilbury or you know relatively close in shipping terms to to Felixtown GPE so there is that capacity to remove the good to buy another route Okay so there is at least that capacity to move things around how normal would you say the logistics in the UK GPE are right now Caitlin PERSON define normal We've been through Brexit PERSON and the the the shocks that that created at least for the labor market and now we're dealing with with strike action at least at Phoenix Store ORG and also perhaps in Liverpool GPE . How normal is the logistic When I I suppose this is like the new normal isn't it? What what I would say is the logistic sector has come through Brexit PERSON and COVID really well. You know Consumers haven't really missed anything. You know there were short term demand shocks. You know the beginning of coronavirus. But this but this shelves were quickly restocked. And I think we have a very dynamic, very effective logistic sector. That doesn't mean to say you know what? I suppose that 8 days DATE of strike. I think Cope PERSON with that I don't think people will see the difference but obviously there will be costs you know because
That doesn't mean to say, you know, I suppose 8 days DATE of strike. I think we can cope with that. I don't think people will see the difference. But oversee there will be costs. You know, it'll be cost a whole years in my been expecting to pick things up at the port and now we'll have to pick Somewhere else or you know, so communication is key here. What we've been saying to the port is it's really important that they communicate with the whole areas that communicate with customers. So that we can minimize any impact As far as possible. Hey you mentioned that a lot of these ships could just be rerouted to other ports. Is there capacity at the other ports to handle that extra traffic? I mean I guess absolutely I would I would say there is for you know for for 8 days DATE worth of strikes you know it's you know it should be should be fine. You know obviously it will be different if the if the strikes were prolonged you know but I think we need to take these things step by step don't we and for the moment I think you know we think this is manageable. Okay, very quickly. What are we expecting here when it comes in terms of fiscal policy? For example, what can the government really do here to perhaps ease some of these Yeah I'm listening to important questions so as logistics UK GPE we've asked the government to make a further reduction in fuel duty you may remember there was AA five pence MONEY pure duty to reduction in earlier this year DATE but that was quickly sort of swallowed up by inflation and what you see happening is Inflation is going up then the government's take on VAT has increasing so our argument is that actually if they continue to reduce fuel duty rather than getting that that benefit that will be better for cost of living it will be better for This costs it would help dampen inflation so you know we think a few duty cut would be helpful at this moment. I wonder okay if I could just ask you in response to some dates we've gone out this morning TIME what you see in the manufacturing sector and clearly log Operators ORG will have AA good sense of what's going on in that manufacturing space. Er we've got a manufacturing PMI ORG reading of just 46 DATE which was which is contraction territory and really low versus what was Away from that specific data point. I wonder what your experience and logistics UK GPE is telling you about that the the headwinds that the UK GPE manufacturing sector faces right now. Yes I mean I'm obviously aware that that you know with Brexit PERSON and and COVID have had impacts on manufacturing I can't say that at the moment that I know anymore than than you do but it but it's one to I think it's not just sort of you know make sure this supply chain's all supporting our manufacturing base Kate PERSON obviously so much of the issues that play now come down to labor and Are a huge issue surrounding this strike in particular but as far as labor ability in the logistic sector in the UK GPE are there enough people in the That's a great question so and it just takes okay we're actually leading a campaign called Generation Logistics LOC you know look at look out for it if you haven't heard of it so what we're seeking to do is promote the logistics sector as a great place to work I think a lot of people you know are not aware of the the range and diversity Opportunities PERSON available on the fact that in particular you know we did a report with Amazon ORG recently which highlighted that you can join the logistics relatively low skills but then there are opportunities to build your career and get Management positions. So, it's a great sector to work in and you know, we're looking to promote that and and you know, attract people really to the sector. Kate PERSON thanks so much Kate Jennings PERSON policies are right to at logistics UK GPE with her perspective on some of the disruptions that we're seeing to logistics in the UK GPE right now later Jackson Hall FAC they'll be taking the will they'll be listening for the fed ORG and what the fed ORG has to say what during pals specifically has to say about the state of the US GPE economy the level of Tom John PERSON and Lisa kick off special PERSON coverage on Thursday DATE this is bling bag.
When you think space you probably think One space agency that travels under the radar is Easter ORG . Which is surprising considering what European NORP space agency has achieved and how visolate it is to the global space industry. Please collaborate with pretty much everybody who is involved in space expiration. The Issa wants to be a leading force in furthering humanity's mission into space. In a different way. The place where we are going to the to do that is on the moon. And Lisa PERSON help humanity take its next giant leap Markets ORG are preparing to close but the day is not over yet. Yes. Upgra You need top analyst to bring you exclusive global insight into cross asset markets. Bitcoin ain't buying along today DATE is gonna be short term. Close weekdays DATE on Bloomberg PERSON . What is your base case for Italy GPE in terms of what happens I don't think it needs to be part of the cure what we we've experienced if we let in place and build up over time like it's in the 70s it was 7 years DATE of we nip it in the bud which I still think we can then you don't have to have these negative effects that people worried about. John Taylor PERSON , professor of economics at Stamford University ORG of course speaking with Bloomberg PERSON yesterday DATE about how he doesn't see recession as needing to be part of the cure. Tom King PERSON , co-anchor of Bloom Tom PERSON we saw we saw him at reference to Taylor Roll PERSON I do like it when economics professional On a sort of name drop the rules they device decades ago DATE No doubt in focus for you what else is in focus Dresses LOC up at a raisin is a raisin he walks in literally as a raisin to show agriculturally economics in Northern California LOC something That's an image that sticks. That's a different. Different day DATE . I went back 30 years DATE . The word is never. We've never seen this. This is the fabulous Bloomberg PERSON financial conditions index White for America GPE in light blue for Europe LOC and they have never ever diverged Anna like we see now there they are in tandem through the pandemic in the European NORP Bloomberg financial condition Index is back to where it was at the worst of the pandemic the US GPE recovers nicely and is accommodated the divide is extraordinary. Tom PERSON I'm sure it's something you're gonna ask your guests on your show later today who do you have coming up well we've got lined up
Extraordinary Tom PERSON I'm sure it's something you're gonna ask your guests on your show later today who do you have coming up well we got lined up mostly about the markets will join from Goldman Sax ORG we'll Economic briefing from him obviously pre Jackson Hall ORG briefing we're scheduling our exit tomorrow we're not taking a golf stream very important we are climate sensitive we're looking at our footprint Lisa PERSON demanded that but we've got some other people as well we will Ukraine Address a suburbs of Moscow GPE with Tina Fordham PERSON of Fordham Global Insight ORG . Alright looking forward to it Tom Keen PERSON watching even beyond that I will be watching the Fed ORG 's Neil Cashcarri PERSON speaking tonight TIME at 7 PM TIME he of course is the Minneapolis GPE fed ORG president Minnesota GPE alumni club he has become firmly in the hawkish camp he has said recently that he would like to see Funds rate at four CARDINAL . Four% in 2023 DATE . So, what kind of tone is he going to strike as we beat the drum toward Speech at Jackson Hole FAC on Friday DATE is this a thread that is going to be continually forceful in pushing back Against market expectations that have turned more in the devast Argument is going to be a very tight labor market but guess what else is extremely tight? The housing market which brings them the data that we're gonna get about 10 AM Eastern New York LOC time really crucial. We're getting some New home sales as well as the Richmond Fed ORG manufacturing index also coming out plus some of that PMI ORG data but really it's those new home sales that I have my Anna. Focus in terms of the politics and and how that weighs in on markets and economic expectations actually into the winter DATE . I'll be focused on chancellor Olaf Schultz PERSON who's making a visit to Canada GPE . It's gonna be the second day of his visit. Here we see images of the first day DATE . There's the press conference they gave on Monday DATE . There'll be another press conference taking place today DATE as we said a little bit early on in the Can Canada GPE help with Europe LOC 's gas issues? That's the big question going into this visitor I suppose. And and maybe the answer is sadly not really in the short Maybe more in the long term there's been talk of regulatory barriers being overcome to increase exports of LNG ORG from Canada GPE but remember a lot of Would need apparently to be in the east and so there were challenges that remain in that regard today DATE their attention actually Economic debate as we head into the winter. That is it for the early edition. Surveillance ORG is ahead. Tom PERSON , John PERSON , and Lisa PERSON will be with you to take you through some great Stations coming up here on Bloomberg TV ORG . So if you look back on your career what would you say is the best investment advice you've ever received? That I never received. But that I've lived my whole life around is surround yourself with really good people I thought about it just today like I do many times you know What makes a great investor A great investment firm is comprised to people who are optimist.
Hey, I do many times. You know, Makes a great investor A great investment firm is comprised of people who are optimist. And pessimist. And realist. Because in the intersection of the debates that go That wide range of personalities is where you find truth. It's part of the reason I'm so focused and freedom of expression. I see it my own four walls. The the robust and fullsome debates around how we commit our capital. What defines a good idea? What businesses to build or pursue? That's what drives the success it's suited out And I I've been very fortunate in life to have always had a group of friends who really pushed me who make me better And here I get to work with three and a half DATE 1000 colleagues who in their ways make me better each and every day and collectively As a team We've had the opportunity to have an incredibly impact on the financial landscape around the world. The markets are to any commentary about trade. We did see some pressure on the UN ORG . We did see some pressure on the future. That is now being reverse. Inflation premium. To react. Central banks everywhere will take anything they can get Good morning good morning Ugly. John's Oh what I would suggest John is after the difficulties yesterday DATE downtown 600 CARDINAL points what we see this morning in foreign exchange John can you imagine his speech if we get Monday DATE Wednesday, Thursday DATE of this kind of market action. Certainly timed up over the last couple of days DATE and we're seeing real weakness abroad. Not just in Europe LOC and China GPE too. Well, here's the quote off the back of the European NORP data. The data points to when economy in contraction during the third quarter DATE . Tom PERSON , that's what we're all looking for in the Europe LOC I would agree and I like the idea that you devolve down to what is economic growth doing because that Strategist NORP in all that it's trying to get a handle on the interdependencies of these global economies what is Governor Bailey PERSON say to And Paul PERSON at Jackson Hall FAC . That's the view from Bloomberg Economics ORG the UK GPE is already in stagnation and the recession is inevitable the question really is just Deep PERSON hiking into pain and really i gotta reiterate what Tom PERSON was saying the issue is how much can the US GPE continue to diverge how far can it go as you do see all of this pain trickling out in European NORP data 2 days DATE down three CARDINAL . Four% over the last 2 days DATE on the SNP ORG I mean, honestly, that's my takeaway. The Bears are saying this is clearly a bear market The bulls are saying we've already seen the bottom this is a time to pick up things on the margins and you have not seen really a shift in that you camps
Clearly cleaning things up. Don't you? Is that us for going on vacation? Bounce back a little bit after 2 days DATE of ugly losses yield tired by not even a basis point through three% GPE in the last 24 hours TIME of a 10 year DATE three. 0165% PERCENT and maybe Lisa PERSON we need to get Breaking through parity. Below parody for the first ORDINAL time going back to 2002 it is solidly there we have reached that level and we are not going back and that To be the direction of travel. Okay, so talking about the European NORP PMIs, we do get a series of S and P PMIs from the United States GPE at 9:45 AM TIME : at 10 CARDINAL I've actually more interested in the new home sales because in the United States GPE I'm less interested in the real time deterioration in manufacturing and services than I am and how much the housing market is rolling over how horrific is it or not as we see the volume is really ticked down we have seen an incredible tick down in the Number of transactions at what point is that translate into lower costs, lower confidence, the whole sentiment or read through of lower prices of mainstays in investment portfolios. At 1 PM TIME , we get the US GPE selling 44 1 billion dollars MONEY of to your notes. This to me is actually a particularly interesting According to some measures ahead of the expected hockey speech on Friday DATE from Fed Church ORG J. Paula PERSON today DATE . This is the And earning season the vast majority of US GPE companies have reported. However, we get the latest read on the consumer Macy ORG 's is reporting any minute now. The sporting goods is at some point this morning as well as north from after Cohesive FAC message about how much momentum consumers can really have at a time of such high inflation. Alisa PERSON , thank It's ridiculous right? Lisa PERSON , thank you. Get a grip it's not that bad just buy it and it turned out to be okay and find it was the right thing to do Steve Orth PERSON is not saying that anymore the chief investment officer Equities have federated hermies. Join us right now. Steve PERSON , you're not saying that anymore. Walk me through it. Why you're so defensive this time around? I just it's different this time John I mean I was thinking about when you're talking about how there could be hiking into you know a recession in the UK GPE while they're they what's causing the Is the inflation in the UK GPE ? And you know the banks are really in a tough spot here where you've got a very high and I think stubborn inflation problem driven by okay You know maybe a temporary commodity price heights etcetera that's part of the problem but underneath it all is shortages and housing shortages and labor globally And the pressure there on the cornflation numbers we think it's gonna be around for a while so this idea that You know, we're gonna get back to the kinda deflationary period before COVID that we experienced for 2030 years DATE . And was, you know, a big driver of markets because of low volumes. Think that's probably behind us and the markets need to adjust Do a you know longer term you know something north to three% inflation environment a 10 year DATE yield in the three CARDINAL to four% range Evaluations after this last rally are just Especially on the gross side of the equation which is where we cut again yesterday DATE . Frankly, these dogs are just overpriced and You know go ahead. Regime how do you presume that your top 40 CARDINAL
Only by side at fun how a corporation's adapt to this higher inflation regime how do you presume that your top 40 CARDINAL holdings will adapt and adjust out the next 3 to 5 years DATE ? Well time you know one thing that we're overweight is dividend being stocks and you know those companies have prestable businesses They've got pricing power they can gradually increase pricing on on their portfolio they should have nominal sales that will go up GDP The stocks are not crazily priced. They're thrown off dividends of three CARDINAL to four%. So, you know, getting a return in cash of three CARDINAL to four%. We think it's not bad with a little bit of appreciation. We've been telling our clients You know, the days DATE of 15, 20% PERCENT per year are behind us now. We gotta be thinking about mid single digit returns on stocks next 3 years DATE . I would point out the cash isn't Horrible as it used to be to Tom PERSON when you were you know doing your three CARDINAL X Leveraged money market fund. I mean, you know, hey, Idea for me just so you know. I'm not sure how much money they owe you for that. No, couple of percent right now. Overweight value stocks and were underway gross stocks Where we think evaluation's gonna compress. So, it does look, it is defensive. It's probably not as As ridiculously defense that you think if you look at you're expecting AA five to seven Return over the next 3 years DATE , you know, per year. Put this in a cold relief. It sounds like you're incredibly embarrassed when you say we're now underway equities for the first ORDINAL time and nearly a decade DATE . What is the nature of the downturn just quickly in terms of what you're expecting versus just A real location based on the first ORDINAL time that we're getting real yield in a very long time. You know there's possibilities of that but Looking at a rocky landing we think we're gonna be bouncing around real GDP growth You know plus or mine is oh one% for the next six quarters DATE we think inflation's gonna stay pretty high come off you know the the We are now but still pretty high in the fed ORG is is not going to pivot because the playbook they're following is the 1970 DATE 's where are the fed ORG made the mistake of pivoting too soon and that led to a resurgence of inflation that cause vocal have to take the economy into a double dip procession as everybody knows in the late seven Jackson Hall ORG on Friday DATE I think the rally has just gotten a little bit ahead of itself right A federated Hermes with a very very different perspective relative to what we've heard from him Tom PERSON for the last decade DATE or so We'll catch up with you on Get together where we're here from chairman Powell PERSON this Friday DATE . Features up to tenths of one% ORG . That's a small bounce relative to the move downwards we've seen over the previous 2 days DATE . It'd say cloudy New York GPE What did you do? Good morning TIME to you. Thank you. Thank you. This is Bloomberg PERSON . Leaving you up today with news from around the world with the first ORDINAL word I'm wishing Maybe coming to pass economic activity in the euro zone fell for a second month August DATE drop was driven by manufacturing still the post lockdown rebound in services like tourism almost ground to a halt can seem as a bit hit by big jumps in energy and food costs And those gasoline prices in the US GPE have now fallen for 70 days DATE in a row that is the most in more than seven Years DATE according to the auto club triple A pump prices are averaging $ 389 MONEY . A gallon CARDINAL after reaching a record high around $five MONEY in mid June DATE . And the US GPE warns that Russia GPE is about to launch
Around $ five MONEY in mid June DATE And the US GPE warns that Russia GPE is about to launch a new round of attacks against Ukrainian NORP government facilities. Ukraine GPE 's preparing to celebrate its It's day on Wednesday DATE president for lot of Miselenski PERSON says that Russia GPE quote me trying to do something particularly nasty. Government reportedly as recovered more than 300 CARDINAL classified documents from Donald Trump PERSON since he left office according to the New York Times ORG that includes papers returned in January DATE a second ORDINAL set given to the Justice Department ORG in June DATE and the document seized by the FBI ORG at Mara Largo PERSON the time says some of the documents came from the CIA ORG and National security agency. Enterprise business platform will take longer than usual zoom reported the lowest sales gain in its history plus its revenue projection fell short of estimates go on the news 24 hours TIME a day on air and on Bloombow PERSON quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries somewhere to get up to this has been back What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology, a lot of innovation, has trickled down from the world of high-tech engines, and it hasn't just found a new life in road cars. Engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company aeropoil to help reduce the energy consumption of supermarkets. The device they're building is based on the design of an F one PRODUCT cars rear It attaches to fridges to keep more cool air in the unit they estimate they can reduce supermarket energy consumption by 25% PERCENT one innovation from F one PRODUCT is also helping hybrids reduce their carbon footprint That's curse or the kinetic energy recovery system in common parliaments is known as regenerative breaking and works by storing energy of the car discelerating in the battery for late for later use Recovery system looking to harness the heat produce from breaking and the engine exhaust that could allow cars to generate the same power using 30% PERCENT less fuel. Climate change. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars
Endless research and a winning strategy Profitability Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis To accelerate the research process. To grow your practice and make better use of your valuable time. The difference is Bloomberg Law PERSON This week DATE . Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving We are working hard to become independent of this The chance of a shelves has got a lot of problems I imagine being in Canada GPE is not one of them right now wants to get away TK Germany GPE and Europe LOC just let it go. Alright. To Canada GPE Yes. My birthday. I'm not saying anything else. Please send I love those markets. Look at that. 100 up by 014% PERCENT . Illton changed just north of three% three CARDINAL . 0183% PERCENT Lisa got things to say you could So good. TK how are you? Domestic. When we get in the same room We're still doing out here I I don't know. Are we on the same? I don't think we're on the same plane. I was gonna take the golf stream and they wouldn't let me The carbon footprint. One CARDINAL different plants. I think all of us have flying different plants. Oh Fridge PERSON the device I've I'm threatening to read Elizabeth economy in China GPE on the plane. Thank you. We can do that That billing canal fee as you walk by. It's been a lot of walking done in the democratic party and today DATE there is an election in New York GPE . Granite, it's about New York GPE . It's not about the rest of the nation But nevertheless Joe Matthew PERSON knows the distance across central parks as much about the democratic party Joe PERSON it's Nadler PERSON and Maloney PERSON they've been doing this forever everybody's focused on this race what is it symbolize to mr Schumer PERSON in the future of the Democra Well for Schumer PERSON it looks like a win he endorsed Jerry Nadler PERSON which is gone a long way to help his standing here when you look at the numbers but this is look this is why politics can be a very dirty business these two CARDINAL were allies they were elected together in 1992 DATE they were part of the senior leadership in the Democratic Leadhouse ORG this would be like Tom Co PERSON hosted surveillance and things get ugly when you start to compete I mean we don't Driving Friday DATE okay Joe Joe PERSON what is that maybe true okay what's the difference between Natalie PERSON and Maloney GPE ?
Hey Facebook describing Friday DATE okay Joe Joe PERSON what is the baby true? Fruits between Natalie PERSON and Maloney PERSON Well a man and a woman if you ask her if you Pioneer ORG the first ORDINAL woman to share the powerful oversight committee and his really kind of got her arms around reproductive rights as an issue for New Yorkers NORP here Jerry Nather they'll say hey listen fine if you if you get rid of me here Not gonna have a Jewish NORP member of the delegation in an incredibly important part of the country here New York Times ORG endorsed him Chuck Schumer PERSON endorsed him i think we see where this is gonna go here but to see two CARDINAL powerful incumbents like this who have been allies for so long for 30 years DATE is quite remark Why why is this happening Joe PERSON ? It's all about redistricting look that you know when the maps change sometimes powerful neighbors can find themselves in the same district buying for the for in some cases similar patches of voters here this is gonna look a little bit For both candidates though once the the new district is in place Cuz I know down in Florida GPE Rhonda Santis PERSON is running uncontestated. The Republican NORP primary there and the contest is really among Democrats NORP . How much is this a theme? With Democrats NORP having contested primaries and Republican NORP incumbents having much more power heading into this November 8 DATE election? It's been a bit of a theme. Are we talked about this? Of course, you know, repeatedly over the course of the the primary campaign. Democrats NORP have tried to prevent that from happening in a lot of cases and and in some cases, it's just in it's inevitable Redraw map. The Democrats NORP aren't losing as much as people thought you have even The senate ORG even if they have to give up the house to Republicans NORP how based in truth is this based in the polls based on the activity in some of these primaries Generic ballot polls they play well for democrats NORP right now but of course that doesn't jive with President Biden PERSON 's approval ratings and it doesn' Democrats NORP here so it's hard to say but when you hear Mitch McCon Speaking ORG to it to the extent that he didn't referring to candidate quality he's talking about the Hershell Walkers the JD Vance LAW is the Doctor Raza PERSON 's who he doesn't feel a great amount of confidence in their Donald Trump PERSON endorsed products and not the candidates that makes McConnell PERSON would have chosen that doesn't When they've all been elected it's just it's too difficult to tell. Off to after Labor Day DATE , September DATE is the beginning of new. Should we be surprised to see Biden PERSON administration changes in September DATE ? September DATE might be a little early that might really follow the midterms you know November DATE is for November DATE too much later obviously but yeah it's just to keep from from muddying the waters here and and getting in the way of the narrative I think what the president is planning though is a national tour whether they put them on a train or send them on air force one you're gonna be seeing him in a lot of cases Washington GPE but they are busy talking about these plans that they're making for fall. One CARDINAL M track Joe PERSON to stay in Delaware GPE . And it depends who you ask for some look being on stage with the commander in chief is a big deal but you are gonna see kind of a case by case situation. It depends on how well Biden PERSON played in that given districts that you're talking about in 20 CARDINAL and exactly what the Infrastructure ORG I won't say build back better some of the other legislative accomplishments that the president has made Yes he'll be welcome John Federman PERSON and Pennsylvania GPE for instance he welcomes the president on stage anytime so you're gonna see different versions of that across the country and that's not a Joe Biden PERSON phenomenon realizing his approval ratings are deep in trouble here Based on the historical trends really don't always.
Realizing his approval ratings are deep in trouble here that happens in midterms where commanders and chief based on the historical trends really don't always help people who are running for congress ORG Jack Matthew PERSON . Bloomberg Radio ORG . PM Eastern Time TIME . TK what are we looking at now? Democrats NORP keep the senate ORG , they lose the house. Yeah, that's sort of the news. It's very fluid right now. It helps to have someone like Joe Matthews PERSON just steeped in the stuff. Back and forth. We catch it with Mark Howard PERSON . Just a moment. From New York GPE . This is Bloomberg PERSON . When I started I had no idea it was gonna turn into this. Empire I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand In the coming months DATE . Not just cut and run. The moment news breaks 24 hours TIME a day. Bloomberg PERSON .
This morning TIME is struggling to hold we fade futures now unchanged are the SMP 500 on the Nasdaq very slightly negative on the SMP ORG over the last 2 days DATE the biggest 2 day DATE drop since the middle of June DATE down about three CARDINAL . Four% on the SMP 500 The equity pitcher. Here's the bond market story. The first day of August DATE at the close your 2 year DATE was at 287 CARDINAL . Look at it now. 333 CARDINAL . You look up again by couple of basis points. The highs of the year introdown are 2 year DATE from 45 TK. So not a one 1 million QUANTITY mi away and the direction of travel over the last few weeks DATE you've seen it. You'll start at the front end. Is really, really important. Any good moving average and you don't wanna hang on moving averages but the moving average that I use of a two-year DATE yield is to monstrobly higher yield than it was in June DATE . It's the sustain nature of the two-year DATE move now that's important. Start to break out back to those June DATE highs again not quite there yet but it's had And as that happens Tom PERSON the dollar strength starts to boil. Yeah. And we've seen that in the last couple of days DATE haven't we? Let's take a picture And Sterling PERSON that's for Brammo just sort of emphasizing which about bad things happening. Break a parity in the last 24 hours TIME capable of breaking 118 CARDINAL at one 1754 DATE for the UK GPE and a euro sign lease the data terrible manufacturing both in the UK GPE and Europe LOC in the 40s DATE and for people familiar with the The difference between 50 CARDINAL plus and below is expansion and contraction and that is solidly in contraction. And we were kind of expecting that kind of weakness from Europe LOC with the confirmation of it in the biggest economies in Germany GPE and France GPE has really gotten a lot of people concerned and I will Say I should change my Twitter PRODUCT profile to speaking emphatically about bad things that could happen It sucks. Alright. CK. On the screen is smart. They're very importantly sterling down to one CARDINAL 1718 I believe. We didn't see a 116 CARDINAL virtually unthinkable Weeks ago DATE . With a very important research note always on fixed income right now. Mark PERSON , you go to where I am. You and I are in the same camp. It's not about Picking the moment is media does you look for a message of a sustained strategy by the Fed ORG what will be sustained about chairman Powell PERSON 's speech on Friday DATE ? I think what's gonna be sustained time. Good morning TIME . Thank you for having me. I think what's gonna be sustained is the focus on trying to squeeze out inflation to the extent that Scramble to get caught up which caused the markets to you know to overcorrect on the downside through mid June DATE and then we had a little bit of good news a little bit of doveishness and I think he's gonna set the record straight and say, you know, don't expect a Dovish NORP pivot anytime soon and that's why we've seen the front end, your work measure, adjust over the last several days DATE . There there's not gonna be anything anytime soon in our view. Optimist do you share the gloom that's floating around right now? Well I don't know that it's gloom time I your earlier guest mister Opt PERSON I think he had had the right tone which is that inflation is a real challenge not just in the US GPE where we've seen it you know settle a little bit but and you guys mentioned yesterday DATE what's happening UK GPE . In many of the emerging markets there's a there's a real challenge and Central Bank's ORG globally are gonna be squeezing against that and that's gonna way on growth and ultimately with the lag defect that's gonna kick in to Corporate profitability and I think that's it's prudent to to not expect the market to continue to rebound. I think we're gonna we're gonna settle in here. Our target for the S and P for example is 4400 CARDINAL by the end of the year DATE . So we think it's appropriate for the market to have leveled off recently. Similar to Brown PERSON had the courage to buy some of that weakness in the middle of June DATE and you and I have talked offline about that. You've always gotta think about the store.
Appropriate for the market to have leveled off recently. Middle of June DATE and you and I have talked offline about that. You've always gotta think about the story, okay? Might not sound good, then think about the price of the story. Can you talk to me about the price of the story in Europe LOC now? We're all familiar with the story. It's not great, is it? Talk to me about the price of the story. How well priced are we for that pretty terrible We're expecting at the back end of this year Yeah I thank you for the kind words you write Sam PERSON and team definitely had a courageous call and and rightfully I think have recently started to moderate that call to be a little more balanced in the outlook so you know the European NORP outlook is as you rightly highlighted is is quite challenging not just But also in the UK GPE and with what's happening recently just the last several days DATE around power and energy prices there's genuine reason to be concerned of real stagulationary pressures as the year DATE plays out we do believe the Central Bank ORG in both Be in the UK GPE will hike in September DATE And you know, that's up, that's a very challenging, near-term mix for Wiscassets ORG . But ultimately, you know, we we don't see a major correction in European NORP asset prices. But we do see, you know, AA choppy road ahead. Mark, you talk about hiking into weak And this has been a theme throughout 2022 DATE what's the trigger point for central bankers to stop hiking and this has been what people have been really debating as to the pivot that some people said never happened and how J Powell PERSON might reiterate a hawkish message on Friday DATE . Well, I think there there are several different things. It's not AA linear line that you get to this point and then they stop hiking. You know, clearly the global economy is going through a down shift. You guys haven't talked much this morning TIME about China GPE You did yesterday DATE . You know, that's another variable that I think is is important. So, growth, I think globally is gonna is gonna moderate a good deal next year DATE and I think that's gonna create a window of opportunity after the Has hiked further in September DATE And December DATE probably by 25 CARDINAL basis points those last two this year to take a pause and let the the contractionary impulse of that monetary policy and QT play through to the real economy and that's when they're gonna reassess that's when we're gonna see a pause and the hiking cycle they may have to Further as inflation doesn't moderate as they expect but I think with the negative impulse of global growth China GPE and Europe LOC in particular On US GPE growth the next board activity as well as the strong dollar that your reference all of that should create an opportunity for the thread to take a pause early next year DATE Mention China GPE it's a perfect opportunity for us to do so where has the market not priced in the slow down that we're seeing actually confirmed even by official data coming out of China GPE . Where have we seen that priced in? Well, I think we should That you think we should. No it's certainly seen it in the currency I I think it is fairly priced and we've seen obviously real stress and in credit in China GPE we've seen equities which had a rally earlier this year DATE have come off and and the currency is moderate so I I think it's reasonably priced in Chinese NORP markets are very very tricky as you know much more so than than the western ones just because you you don't you don't have clarity it's not just a fundamental fundamentally driven market you've got incredible monetary and governmental stimulant and contraction that can go on I think I think markets are fairly priced in China GPE reflecting the uncertainty because as we know this is a big year DATE as your place out with their forum we don't think they're gonna let the economy collapse a whole lot further Speak with a certain authority or BNP Perrybaugh has an absolute unique relationship with China Back to 1860 DATE on my first ORDINAL trip to China GPE folks I had the pleasure of the honor really of meeting with senior BNP ORG officials in government officials in Beijing GPE it was a Meeting Mark Howard is the united states GPE risk China GPE trade in commerce to Europe LOC is there a point here where Europe LOC and particularly BMP Perrybust ORG France GPE can be opportunistic and get a marginal ed
China GPE trade in commerce to Europe LOC is there a point here where Europe LOC in particularly BMP Perrybot's PERSON friends can be opportunistic and get a marginal edge in China GPE ? Well, my good friend and colleague George Son PERSON is the best person to ask about that because he's on the ground and he's watching the flows day to day DATE . But I I think that you know China GPE is a global player and and there they have you know bilateral relationships with all the leading trading partners including those that have big financial institutions I'm not sure that it's a regional opportunity or risk that Framed PERSON right now. I think rather it's it's in in market by market product by product. It's in the best interest of all global players to continue to support trade even though there are tensions in frictions. The one CARDINAL belt one road initiative and the the variants of Create opportunity for European NORP institutions and for African NORP and for American NORP and I think that's gonna continue to be the case but certainly they're gonna be fits and starts and they're gonna be, you know, periods where you know, one one CARDINAL country or one CARDINAL institution finds itself on the back foot temporarily but Global players will remain I think committed to China GPE . They won't let they won't let it happen. Mark that implies they have a great degree of control over the situation that is up to them not to allow things to happen. To what extent do you think they actually have control over some of those some of these dynamics taken place in this economy Well, it's not just the ability but the willingness, Jonathan, and that's that's why I, my friends used it that way. There there are certain circumstances like the housing and the and the property markets where they have the ability to Pump things up there with the ability to insert capital and and stabilize financial institutions or construction companies By, you know, orchestrating the workouts of that. We don't do that in the west. We don't do that in the UK GPE or Europe LOC . So, that's one CARDINAL example of where that clearly in the market as well and given the importance of export activity for them They they had the ability to to to maneuver their currency in order to support key sectors of their economy and they used the regulatory switch rather aggressively too so they have the ability to support some of their domestic exporters at the expense of other players so I I think they just do it more frequently Which in my opinion means that they they're more likely to intervene and support growth and other priorities Send our best I think that's an important dynamic to think about in China GPE because if they do face what some people fear they face which is of some form of liquidity trap they're not allowing to things to happen what it maybe their control is the weather happens or not especially because Lila Miller PERSON yesterday DATE was saying they really haven't put that much stimulus into the market you say faded response Stimulus. They did start to put in. Features up two CARDINAL tenths of one% This is bloom back. Keeping you up to date with news farm around the world with the first ORDINAL word I wish you could get yeah the US GPE says that a nuclear deal with Iran GPE is Spokesman PERSON says Iran GPE has appeared to drop some of its quote non-starter demands the Biden PERSON administration continues to review the ears latest proposal Survive the agreement curbing Iran GPE 's nuclear program. The group has collectively placed a big short across futures for a key overnight rate that moves in line with the feds benchmark that position will benefit if fed ORG chair and palette GPE effectively rules out a doubleish pivot when he speaks at this week DATE 's symposium And the price of US GPE natural gas rose above at 10 1 million a $10 MONEY per one 1 million CARDINAL BTUs for the first ORDINAL time since 2008 DATE that extends a rally driven by concerns that global stockpiles aren't enough to meet winter DATE demand in the US GPE inventories are well below normal after summer DATE heat boosted electric Demand meanwhile production has grown a modestly And life expectancy in you.
In the US GPE inventories are well below normal after summer DATE heat boosted electricity demand meanwhile production has grown a modestly And life expected to see in New York GPE plummeted by 3 years DATE in 2020 DATE the CDC ORG says that was the Decline ORG among all states in the first year DATE of the COVID pandemic. Residents of New York GPE are expected to live to just under 78 DATE , the 15th ORDINAL highest life expectancy in the country overall US GPE life expected deep plunge by 8 years in 2020 DATE that is the biggest drop since World War EVENT two CARDINAL global news 24 hours TIME a day on Aaron PERSON on Bloomberg GPE quick take powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries and we could get to this is Bloomberg PERSON If you do any kind of business in this country, there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming Enterprise Way to sit around and wait for change. We want that independence. We want that freedom. We want that individuality. And that's a common theme that brings together a bipartisan support for this NYM ORG . We wanna make sure that people understand, especially in Wyoming GPE , but as you know, it is a whole. This trend is coming. It's not going to stop. This is more of a small town that's growing into without a call that cryptocurrency version of Silicone Valley FAC . It's the philosophy of that rugged individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. We're not data point dependent. What do you think of when you think of a battery For most it's what we used to power devices for both work and play and maybe even your car Over the past few decades DATE , they've gotten way more powerful, long-lasting, and affordable. But all of this is just a prologue to what the next batteries are going to do. As we drive to a increasingly renewable power driven grid, we also need to be able to store energy and release it later to cover those periods of weather intermittencies that are driving this new grid that we're in.
We also need to be able to store energy and release it later to cover those periods of weather intermittencies that are driving this new grid that we're in. It's a multi-trillion dollar MONEY opportunity It's imperative that we figure out the solution here How we store energy on a massive scale is in many ways the central challenge of the fight to stop climate change. We're seeing increasingly Naturally what's going on with the natural gas situation is is a is a key contributing factor there and so we're targeting 97 on Euro And more strength to come for the dollar. Good morning Tom Keen PERSON Lisa Brown PERSON with Saint Jonathan Ferrow PERSON futures up just a little bit let's call it two CARDINAL tenths of one% Higher ORG on the SMP a quarter of one% ORG higher on the Nasdaq 100 I've gotta get used to quote in this 99 27 I'm just road toddler Wait this type of number it's gone we're negative 016% PERCENT . That's more euro weakness out there and some more dollar strength Tom PERSON It is right now let's get to this because I think it's so important it's a bit away from what we're doing in the markets John and I'll do that with foreign exchange here In a moment Sterling one 1762 ORG International relations in Europe LOC and the unspoken Tina Fordham PERSON joins us right now found in geopolitical strategies to form global foresight I I Tina where we are in the bombing in Moscow GPE and all that and there seems to be an unraveling and our world it is a parable of energy prices in your world it's something like miss Maloney PERSON in Italy GPE with not fascist but certainly very osteo tendencies like How unsettled is Europe LOC The energy price overlay. Well Tom PERSON you've highlighted some of the the themes that are And really in the in the global political risk outlook where those high energy prices you've mentioned of course are being driven by the continuation of of the Russian NORP invasion of Ukraine GPE which is no sign of a bating plus the long standing Kremlin ORG policy of of intervening in in European NORP politic It's not illegal first ORDINAL of all for European NORP political parties to actually take funding from from other countries and and furthermore this is long documented urbans picture orbits connection to the Kremlin Matilda Salvini ORG who's on the record today DATE from the Legonord ORG party in Italy GPE saying that perhaps sanctions against Russia GPE aren't working. So, while policy makers and markets are, you know, rightly focused on the kind of harrowing inflation outlook. Ticking up the reaction function and the attention These cracks are are really concerning on the September DATE elections in Italy GPE are going to to put a prime minister in office who is uncomfortably close to fattest tendencies and with you know connections to Russia GPE . There's gotta be my my reading of history here and it may be 1938 DATE under whatever you could pick your point of gloom Fact is this pricing leads to international relation and political adjustment what would you suggest that adjustment will be? Well it's the first ORDINAL level it's going to lead to enormous household distress And I see that through the lens of what's happening here in the UK GPE with the leadership contest for the for the Tory party and the talk about the energy price cap you were talking about households seeing a quintupling in their energy bills that normal household paying you know over a 1000 lb a month for electricity It's a shark that is not going to be
Normal household paying you know over a 1000 lb a month for electricity it's it's a shock that is not going to be able to be absorbed so first of all it's going to I think there's gonna be mass non payment It's all about getting those 160 1000 CARDINAL conservative party voters. Different platform So this government is going to be reactive by contrast macron in France GPE has been more proactive saying it's Hey the patriotic duty to kind of deal with it and we have to stay strong in the in the face of of Russia GPE I think that Europe LOC 's resolve when it comes to supporting Ukraine GPE we'll continue but it there's gonna be a lot of pain this is going to hurt and you ask what the kind of Your response is going to be Look at the pandemic and they're going to expect government support. How we get there is very hard to say. But the public won't be able to absorb price increases of of these proportions. Went where I wanted to go which is you said that the resolve will remain strong to support Ukraine GPE to battle Russia GPE and that the European NORP people will continue with that When does that phrase especially as power cost And there is an increasing course of people saying perhaps some of the sanctions and some of the measures taken against Russia GPE were as penalizing to the western nations as anyone else. Well I mean it's it's always a question right of what's the alternative and there's no going back to Russia GPE as an energy supplier. Those days DATE are over and the substitution of supply is already happening. We are however looking at AA very difficult Winter here one that people aren't used to you know in the old days at least you had AA fireplace and you could firewood now it's central heating which means people are going to have to to turn it off so it's going to be incredibly difficult but what you do see in Europe LOC is An increasing sense that Ukraine GPE has to win this conflict But I guess what I'm trying to say is that maintaining that position Of support and the sacrifice that it's going to entail for households means you have to accelerate the green transition you've gotta keep those nuclear power plants going which is a huge turn around for Jerwood ORG policy and that's happening rather quickly not quickly enough to alleviate pain this this But i think quickly enough and and again we can't go back to to Russia GPE as a as a dependence upon Russia GPE as an energies supplier there in honor of Huge ORG huge changes. We need to try to down to 10 CARDINAL afford them global forsight and Tom PERSON I really wanna pick up on that I think we're all struggling collectively to process some of these numbers and some of these moves and we haven't even started to think about the so called Can round effects of all of this. Yesterday DATE we talked about city's forecast for inflation in the UK GPE may be peaking at 18% PERCENT in January DATE . I just feels like a number with throwing out there Tom PERSON without even really thinking through. Totally rude. What on earth But Tom PERSON I don't think we really understand what that actually means for the European NORP consumer this winter. And this is really important and that it's part of what we're Bloomberg PERSON and you know, the invention is surveillance and all that John is by definition. We're removed from from all this but to your point of second ORDINAL order effects at the Order PRODUCT the second ORDINAL round if you will as time moves on And where Tina comes in and others in international relations is trying to look to the past and the ghost of the past and say what's different this time and that Urgency to the fourth quarter of this year DATE that we haven't seen in ages DATE . These are parabolic moose, John. Huge moves, Lisa PERSON , and really complex issues. And they're trickling out to just beyond the euro zone. You're seeing natural gas in the US GPE also surge. Should the highest level since 2008 DATE . So, come
Lisa PERSON and really complex issues. And they're trickling out to just beyond the euro zone. You're seeing natural gas in the US GPE also surge. Should the highest level since 2008 DATE . So we're coming global. Raising that issue. How divergent can these economists go economies really be? We'll catch up with an economist next. Snacks. Coming up in about 5 minutes TIME time from New York GPE . This is Bloomberg PERSON . Apples delaying it's next major iPad ORG softer update iPad ORG OS 16 CARDINAL by about a month DATE from September DATE to October DATE . Apple ORG made the decision for a number of reasons including a still buggy stage manager multitasking interface and in order to link the launch closer to the more similar MacOS Ventura GPE . Still it's an unusual move since shifting the launches to the fall in 2011 DATE Apple ORG has released it's new iPhone ORG and iPad ORG softer updates simultaneously each year DATE around September DATE . Users may find some issues around compatibility with cross device features like retracting and editing messages in iMessage The new shared icon photo library and the new feature for transferring FaceTime ORG calls between iPhones ORG and iPads ORG . It will also make it a bit harder for developers to launch apps that run on both the iPad ORG and iPhone ORG that require new APIs and features found across iPad ORG OS 16 DATE and iOS 16 Regardless it was still of course the right move Stage manager on iPad ORG 016 is still quite buggy I don't find it particularly intuitive and it's not compatible with most iPads and many third ORDINAL party apps on the App Store the feature clearly need some more polish and complaints from consumers about stage manager will now no longer probably Surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. The Fed Empower ORG in particular Inflation premium. To react.
To react. Central banks everywhere will take anything they can get Oh my god. New york GPE city this morning TIME . Morning TIME . It's about the data the shock I'm looking at the Bloom We're gonna review that with you throughout the hour and frankly throughout our trip to Jackson Hall FAC and what we'll hear from Chairman Paul PERSON on Friday DATE John I wanna go to the great divide of America GPE this is something Yahtzee GPE Did years DATE and years ago DATE Macy ORG 's just out John and buried in it as a comp sales it working class Macy ORG 's Two CARDINAL . Nine% and a fancy blooming deals where Mrs. Farrell PERSON shops up eight CARDINAL . Eight% ORG that describes a divide of this nation. From retown right now marks down promotions Lisa PERSON inventory aged inventory these are big big problems that we were hopeful that targeted work their way through Macy ORG 's it just seems that just starting the Is that they actually beat expectations when it comes to sales. However, when it comes to their forecast, they ratchet them down because of the expectation of consumers slowing down their purchases. How do you get ahead of such a quickly moving tide of consumer sentiment and the post pandemic reality job? They've had to cut Guidance this morning TIME . Positive about a 10th ORDINAL of one% on the S and P. Macy's ORG just about positive as well. On the Nasdaq 100 up by 015% PERCENT . It would take a look at the bond market. You will turn changed that just north of three% GPE as the breakthrough three CARDINAL we've seen in the last 24 hours TIME but the moving foreign exchange Higher gas prices what we're watching today DATE 9:45 AM TIME : we do get a series of PM Out of the US GPE for manufacturing as well as for services although at 10 AM TIME , this is what I'm watching in terms of data. Us GPE July DATE new home sales, how much do you see activity in the home market? It really deteriorate on the heels of higher mortgage rates. At 1 PM TIME , the US GPE is selling 44 1 billion dollars MONEY of two-year DATE notes. This is fascinating to me especially as people We've been hearing about that from Steve Oth PERSON and others at three CARDINAL . Three% GPE however what is the risk of the fed ORG going much further and staying there longer than people are currently expecting and we were just talking about Macy ORG 's the earning season is Dripping PERSON to it and here we've got Macy ORG 's that just came out. Those chairs up now two CARDINAL . Two%. They did beat on the sales. However, they downgraded their overall forecast. We also hear from Dick's Sporting Goods ORG . Ignore it from after the bell. How much does Macy ORG 's really become the theme in terms of the mood Forward. What does it say about the consumer John? At a time where they've hung in there for now but there's the expectation that it is a temporary resilience that will fade. That sucks this morning TIME hanging in there Now. Send Lisa thank you. Joining us now we get really lucky. Chief economist at Yan PERSON let's talk about it. China GPE . GDP forecast over at Goldman ORG now three% GPE for the year DATE . Europe LOC based case for pretty much Everybody they answer recession yeah I'm wearing earth does that leave the US GPE economy I think the US GPE doesn't have quite the same degree of headwinds as as both China GPE and Europe LOC and China GPE obviously you have oh COVID policy and the property market downtown Is a multi year development in Europe LOC you've got the gas issue there's nothing quite to the same degree that we have in the US GPE but it's going to be a slow growth environment below trend the fed ORG once below trend that's why financial conditions are where they are because the Tightening pretty aggressively and you've got the fiscal drag so plenty of headwinds for sure but I don't think it's quite as bad as in as
Because the feds tightening pretty aggressively and you've got the fiscal drag so plenty of headwinds for sure but I don't think it's quite as bad as in as in China GPE or the Euro area. How do you expect him in town to navigate that young this I think he'll be balancing between two CARDINAL things. One CARDINAL , I think he will lay out a case as he did at the last press conference as they did in the minutes Slowing the pace of increases with 275 CARDINAL basis point moves our expectation would be barring significant data surprises that the September DATE move is 50 CARDINAL I think he'll you Don't think he'll be specific about the number but I do think he'll be saying you know there is a risk of overtightening Therefore it makes sense to go a little bit more slowly than this really outsized increases but at the same time he'll he'll make clear that the job is not yet done inflation is way too high they're Permitted to bringing inflation back down to two% or or thereabouts so I think it will be a balancing act. Bloomberg PERSON in the last 24 hours TIME saying sustain sustained sustain a higher yield environment are we getting our time our XXS FAC wrong Now do we need to look out 2 years 3 years DATE or 5 years DATE of elevated inflation I think a year from now 2 years DATE from now inflation will be much lower because there are some you know some some drivers I mean commodity prices are are clear the good sector in general I do That's going to come off a lot. The risk is more on the service side where we've seen less of an indication that things are slowing especially rents are still growing very quickly. So, I think that's still going to be well above normal, you know, into 2000 Maybe even maybe even beyond. So, Do think that they're they're going to be improvements but not everywhere. Should we have a more nominal GDP nominal inflation analysis, witness that haves and they have not that have nots are getting crushed minute by minute should we switch to a more nominal study? Well I think what you're suggesting is that we look at the distribution of incomes and and spending and you clearly see some big big differences there and I think You know, Macy ORG 's versus North Strongs LOC is a good example. You can look at Real income at the top end at the bottom end of the income distribution there's been a much bigger pullback at the bottom end in part because the fiscal support was so much more important there and that's come off and in part because at the bottom end you see more of an impact from gas prices and inflation generally The margin the dropping gas prices obviously is helping somewhat more at the bottom end but that's only a small part of the previous deterioration there is over yawn at least with physical goods a bit of a disinflationary pressure whether it comes to inven Or some of the commodity prices that have come off is it enough to achieve a soft landing if you actually improve some of your forecasts about what the fed ORG has to do and the outcome in the US GPE economy I think it's certainly helped for and we've, you know, continue to be in the softish landing camp in part because of the expectation that some of the goods precious would abait. The most important Adjustment in the labor market. That's something that they need to pull off and I think we've seen some encouraging indicators in particular the one. 1 million CARDINAL decline in job openings that we've seen in the Which is probably still underway we'll probably see some further significant declines there that is To bring the labor market into better balance. Still early days DATE , we still have a large gap between between jobs and workers, but at least we're moving in the right direction, there are nothing. I think that Would be key to sustain it. Do you think that the market right now is not reflecting what still has to be done though from the federal reserve in order to achieve that? And this is something that we've heard about throughout the morning TIME , the theme of the day DATE has been it shocks me to wake up to it. That is the bearish tilt.
From the federal reserve in order to achieve that and this is something that we've heard about throughout the morning TIME the theme of the day DATE has been at Stockton GPE to wake up to it that is the bearish tilt do you agree with that that right now they are not accounting for the pain Hey think the terminal rate pricing doesn't look too low I mean it's sort of three CARDINAL you know three and a half DATE or a little bit more I think that that is sufficient relative to to all of forecast Maybe even a little bit more than sufficient. Where I would disagree more with market pricing is the pricing for significant rate cuts. I think that you know certainly could happen. It would happen if you So I I do think that those cuts are probably somewhat excessive from Market pricing perspective. For how long is it too early to premature to have that conversation? Oh I think it could be a couple of years DATE . I mean really get to the you get to the you know mid threes or or maybe even a little bit higher and then you stay there I think it'll still be significantly above the target and ultimately they do want to get back down to pretty close to two% ORG . Yeah, that is totally out of consensus. How much push back do you get from clients when you bring that up? I think it's a way from market pricing. I don't know if it's as out of consensus in terms of what forecasts are saying. I think they're quite a lot of forecasters and beneficials. I mean you you just mentioned Right? Reasonable baseline. This is the theme. If you're gonna hold rates of that kind of effort and it could be a stress you said could be a couple of years DATE when is a soft landing fit in to that kind of profile that kind of race profile Well I think that is a soft landing kind of kind of assumption if it wasn't a soft blending if you went into a recession then I think you would get cuts but if growth stays at one% one and ORG a half percent labor market continues to adjust inflation gradually comes down Relatively high you know I think that is a soft landing absolutely fascinating yeah it will continue this conversation So much. I'm not on Goldman ORG 's HQ. No. Where it's located? But more just on. Can you imagine Lisa PERSON ? Three and a half percent DATE for a couple of years DATE . I'm looking at investment grade bonds to all yield was below two% ORG not that long ago. We can have a discussion. This is a fascinating one. The future's unchanged on the SMP from New York City GPE . This is Bloomberg PERSON . Keeping you up to date with news from around the world with the first ORDINAL word I'm rescued gasoline prices in the US GPE have now fallen for 70 days DATE straight that's the most in more than seven and a half years DATE To the auto club triple A. Bump PERSON prices are averaging $ 389 MONEY . A gallon CARDINAL . That is after reaching a record high over around $ five MONEY in mid June DATE . Maybe coming to pass economic activity in the Eurozone fell for a second month August DATE drop was driven by manufacturing still the post lockdown rebound in services like tourism Ground PERSON to a halt. Could seem as had been hit by big jumps in both energy and food costs The US GPE warns that Russia GPE is about to launch a new round of attacks against Ukraine GPE and government facilities Queens GPE preparing to celebrate it's independence day on Wednesday DATE says that Russia GPE quote may try to do something particularly nasty But it's wees is now dope seeing more on wealth management while it's making cuts to its trouble Estimate ORG bank. Bank ORG is we are signing advisors to its private banking international unit which goes after high net worth clients that is according to an internal memo seen by global news 20
It's private banking international unit which goes after high net worth clients that is according to an internal memo seen five CARDINAL when he is 20 CARDINAL More than 120 CARDINAL countries and which could go up to this has been bad. Today DATE what is the biggest challenges for general dynamics and what are the biggest opportunities So, I think in in any business, the challenges are solving complex problems that come to you. You know, they're the problems that come to me and my senior leadership team for for resolving tend to be highly complex and nettle So your ability to solve those complex problems are an important element. I think of the value that we add. To the company. And then I think opportunities, you know, you always wanna make sure that you've got a creative, enough mind, and open enough mind to be able to see around square corners. What are my missing? You know, the Y ORG questions are really For why are we not doing this or why are we doing this? I ask those questions a lot and in the answers, you can sometimes tease out some real opportunities, some hidden things, but thinking creatively about Opportunities PERSON and problems. It's really important. And what about the industry generally? I think they have big challenges now as the defense budget probably comes down a bit. So I think that we are all responsible and and we have an obligation To find the latest and best technologies that we can for our customers and deliver them the most cost effective manner we can and I think that that's a challenging and opportunity for all of the big defense companies Markets are preparing to close but the day is not over yet. Lot of volatility right now. You need top analyst to bring you exclusive global insight into cross asset markets. Hey it's gonna be short term Access PRODUCT the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars
This week DATE as the world watches inflation rise employment rebound Economic policy symposium. Discuss the economic issues and solutions that keep the world's money moving Radio ORG . A real mess. There's no growth momentum anywhere in Europe LOC . The only place where I can see any growth momentum coming through before the end of the year DATE is probably in the US GPE and even that it's gonna be patchy but it's no end near as bad as it is in Europe LOC and I think that the US GPE is gonna avoid recession quite comfortably. I needed that calming soothing music to promo Jackson For Ed Shepherd Center Panther ORG and turns around and just says things are a real mess. Basically unchanged on the S and P 502 really tough days for the equity market balls over the last 2 days DATE on the S and P 500 we've been lower by around about three CARDINAL . Four% now as they Up around about a 10th ORDINAL of one% ORG . Any effects market euro dollar in 99 27 DATE . We down another 10th ORDINAL of one% ORG it's 4 days DATE of euro weakness and Tom PERSON more we data out of Europe LOC this morning TIME . We need a pause on this John the bid he gets stressed here about 20 minutes TIME with DXY ORG out over 109 CARDINAL Greg Anderson PERSON at BMO Capital ORG using BBB ORG BBD XY as well John I I don't even know what to pick here other than Sterling ORG had a difficult 3 AM and now Euro MONEY . 9925 is challenged we need to pick up on the conversation we just had with Told us that the hurdle for interest rate cuts next year DATE is much huge. Yeah. Than most people think. He also post the idea Tom PERSON that maybe you get to about three and a half percent CARDINAL and you stay there for apps Discuss Tom PERSON in a material way at all. Well, I've been talking about the XAX ORG . It's not my job. You'll pine on this. It will leave that to Dr. Hatsia PERSON and other wordies but John I just think it's one CARDINAL outcome that has to be considered at the Absolute Minimum and as you and I said earlier this is gotta be it's just gotta be the to me the core theme here at Jackson Ole FAC leading up to the the chairman's speech on Friday DATE again John we're there Thursday DATE it's you me grizzly bears Lisa three PERSON elks Hey Ignore I've actually never pharaoh suit on. Grizzly bear in the lodge. That's the best we need to discuss on Friday DATE Lisa. Market saying rate cuts let's go in 23 CARDINAL and some people like Yanhartius and the Federal Reserve ORG for that match are saying hold up hold up what we might be holding for a while it's the good and the bad of Brazilian NORP economy the good is that it's resilient that you avoid a At that level for longer without torpedoing the momentum and that's something people haven't really discussed. On this right now futures little bit elevated not quite as elevated as earlier. Right now, quickly Joe Matthew PERSON from Washington GPE . Joe PERSON , get out the map. Moscow GPE straight south to Kramey PERSON is 1100 DATE mi. All Putin PERSON cares about his crimeia over to Odessa PERSON which is 360 CARDINAL mi. Triangulate this with President Bi PERSON In Washington GPE . All of a sudden what's changed is Crimea ORG is discussed. That was unthinkable Joe PERSON 2 years ago DATE . This is very true and we're seeing this virtual meeting now with delegations from 40 CARDINAL nations trying to put pressure on Vladimir Putin PERSON over crime media I imagine that he thought this was said and done here but there's a lot of concern about tomorrow we're Remember the US GPE ambassador to Ukraine GPE is only been there for a couple of months DATE now our diplomatic presence in the capital could be very much at risk if Vaughn Putin PERSON to the point of of of president Solanski PERSON
Our diplomatic presence in the capital could be very much at risk if Vatimer Putin PERSON to the point of of of president Solanski PERSON who you see right now could try something cruel could try something unusual in attacking the capital city on what of course is a day of celebration for Ukrainians NORP Here on the terminal of a Russian NORP military again that is bogged down And a Ukrainian NORP military that is inspired by the the effort to protect its homeland in a remarkable way is this gonna be something we're talking about 6 months later DATE that could bring And we all hope that it gets resolved sooner in a way that avoids some of the carnage. Joe PERSON we've been talking about the resilience with Tina Fordham PERSON , the persistent feeling in Europe LOC , that this is an important cause, even as gas prices rise dramatically even as Surrogates ORG for Joe Biden PERSON whether they like it or not go out and takes a campaigning Well, it is for now. The question is, how long can this last? When does the war fatigue set in? When are the louder questions about spending billions of dollars MONEY to support the effort in Ukraine GPE ? It's actually quite remarkable that there has not been a larger crime, more isolationist view, particularly from members of congress ORG but the Biden PERSON administration Has held true to its promises so far for president Zalenski PERSON and the people of Ukraine GPE where we gonna be though post midterms where are we gonna be as we go into the winter heating season those are really important questions the reaction here in the United States GPE could be very different from what we John Matthew PERSON thank you looking forward to the show a little bit later Sam Don PERSON on Bloomberg Radio ORG weekdays at 5 PM TIME eastern time let's start on gas prices at least there is just amazing isn't it was it 70 days DATE Just amazing. Gasoline which is come down for 70 straight days DATE versus natural gas surging around this whole country. Wouldn't get confused. Wouldn't that help out? That's unAmerican. Sorry. Nobody wants to call it illuminate. Okay, alright. Let me talk soon about that. We can't A gas station. It's Where's my intern? Can we get some therapy for those two CARDINAL ? I mean is it it's In in in the UK GPE do you call a petrol station? Really? Wow. Okay John can I post what heart to you said? This is stain here is not a static sustain. It's a eight% inflation. It's if we come down and it's totally unacceptable for Lawrence Summer's PERSON and for anybody at the fet on the other side of the debate It's three% or four% or five% that's the then what And that's where you get into the 3 year DATE regime. You've raised that few times Tom PERSON and I totally agree with you. We're talking about Fed Pivot just because we've seen year over year inflation peak potentially there are North and nine% Lisa PERSON it's a big And this is the reason why people say that there is no pivot. I wanna go back though to what Yon Hats PERSON is saying. Basically, his implication is that this economy is a lot less interest rate sensitive than people thought that they can withstand a three and a half DATE to four% interest rate for a prolonged period of time without getting a torpedo. This goes against the conventional wisdom of the low Whole decades and I find that fascinating. Find that out. Find that out. No. Really petrol. Pioneer grill. On. Oh, they're local. They're local. Oh Lisa PERSON told me.
When you think space you probably think One space agency that travels under the radar is easter. Which is surprising considering what the European NORP space agency is achieved and how vicele it is to the global space industry. Please collaborate with pretty much everybody who is involved in space expiration. But Issa PERSON wants to be a leading force in furthering humanity's mission into space. In a different way. The place where we are going to the to do that is on the moon. And Lisa PERSON help humanity take its next giant leap The difference between endless research and a winning strategy Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process To grow your practice and make better use of your valuable time. The difference is Bloomberg Law 2 days DATE of losses on the S and P 500 the last 2 days DATE down by about three CARDINAL . Four% on a SMP this morning just in and around unchanged on the SMP ORG positive 004% PERCENT . Similar move of an Asnac 100 a lot of the pain the contribution from the front end to the bond market I think Look at 2 years DATE together 287 CARDINAL at the start of August DATE getting really close to the interstate highs of the year of 345 CARDINAL right now about 333 CARDINAL yields up by a couple of basis points the 332 Two and the prospect that may be the fed ORG does raise and hold and hold Thomas
Right now about 333 CARDINAL yields up by a couple of basis points the 332 Sue and the prospect that maybe the Fed ORG does rate and hold and hold Tom PERSON at three CARDINAL . Five% there and thereabouts for a couple of years DATE according to Snacks TK that's the big divide as we go into Jackson Hall FAC people looking at to 23 CARDINAL and talking about raid cuts and a fed ORG not saying anything about it Bloomberg PERSON intelligence and economics adamant that we're gonna go much much higher than maybe hotties is center tendency. I'd also suggest John John Taylor PERSON of Stanford University ORG was forceful with Bloomberg PERSON a number of hours ago and just saying look we've got a normalized at any cost in that Two CARDINAL questions Tom PERSON and they're the right ones. One, how resilient is this economy and two CARDINAL , if it's not that resilient, how tolerant will this fed be if any weakness and that really means you have to roast yourself the question, Tom PERSON , how high is that hurdle for right I would say John Dapp PERSON hurdle going back to Mcchesney Martin PERSON and Truman PERSON is a political hurdle. I'm sorry. This will get to a point where politics will invade the discussion. It's not clicked in just yet. Not for sure. On the other way. That was a very different picture. Did you do okay there? Hey Football prediction. Let's look at foreign exchange. The best tweet I've seen. Over the last few days DATE . It's just a China Euro ORG dollar. A break of parity and the title Tom PERSON is it's called soccer now. If you like that so I guess The power of US GPE dollar. Wrong. As Man United get it done but TK we've gotta get used to this. 99 25. We have Matt Hornback PERSON and Morgan Stanley ORG yesterday DATE saying 97 CARDINAL , Jordan GPE , Rochester GPE saying, maybe 95 CARDINAL over an Amora GPE . That's some big calls. Genetically gonna go to EM analysis on this and you know there's certain economies that are actually doing pretty good here. It's a developed economy, a developer, headache right now, but with that Maybe we do what we always do John walk yen yen yen MONEY has not weekend yet talk about sterling one 1768 stunning About and change but numbers that Tell me I didn't think we'd be talking about through much of the sheer. I have to say. And 9795 DATE . I say that bit cools but at 99 22 CARDINAL on Euro dollar LAW . It's a cup of coffee away. Basically that. Maybe a few sessions away. That's the foreign exchange story that cross that said picture. Let's get you some single We can do that with Lisa PERSON . Hey Lisa PERSON . Hey John. If you want an emerging markets feel take a look at bed bath and beyond shares. They have been all over the place losing 60% PERCENT three trading days DATE a little bit of a rebound today DATE . Up about four% revenge of the memes. AMC ORG I got hammered yesterday DATE because Theater ORG operator as As in this more importantly preferred chair is starting to trade you're seeing a little bit of a rebound there not much there's a big question about live audiences getting back to it in the post pandemic era zoom shares down 11 CARDINAL and a half percent pre market trading after downgrading their sales forecast yesterday DATE after the bell in terms of Today DATE we just got dick sporting goods and we did see them beat expectations as well as raise their full year DATE forecast you're seeing a pop and no shares in response two CARDINAL . Three% GPE gain Macy ORG 's up at two CARDINAL . One% even though they actually came out and downgraded their Forecast but people were expecting this to me Fascinating PERSON . So, people are rewarding their beat, rewarding what they're delivering was even as they say, look, it's gonna get worse from here in Nordstrom ORG shares up one CARDINAL more than one% ORG . They report after the belltime. Lisa PERSON , thanks so much. Greatly appreciate it. Long ago and far away A short-term paper and a short-term trust market was either commercial paper analysis or labor analysis when he sees her noses global head of strategy. A credit site Winnie I wanna PRODUCT start with the gloom that's out there the stew of Bloomberg GPE surveillance and the joke we make is it's a toxic The toxic brew out there now what are we gonna learn from the short term trust market what we used to call the library market what's a toxic brew you see right now in short term paper or is it all come? Well I'm not sure about a toxic brew. The front end of the market has clearly had some pretty significant challenges trying to assess exactly where the.
Well I'm not sure about a toxic brew. The front end of the market has clearly had some pretty significant challenges trying to assess exactly where the fat is heading. Seeing a lot of the leverage load markets which reference away from library towards so far. There's a lot of just for it's headwinds going on in the front of the market and that's just made it for a really Kind of liquidity market more broadly and then kind of pulling forward some of the big seams that's going on the front in the market you just come to the shape of the curve and that has been you know a real challenge for economists for corporate credit investors just for pretty much everyone involved in the To market. When I mention toxic brewing library that cause your baby to scream did I did I make it a fox par Okay, Lisa, please pick it up. What I said was, Pick it up A lot of people are screaming about the potential for interest rates that you like Segway PERSON or Would say. And how high they could go and I wanna go to theme or perhaps not hiking rates as far as some people are projecting the bid Bill Dudley PERSON ask is up north of four% but at three and a half percent DATE for a prolonged period of time has this economy become less interest rate sensitive than many people previously it Lisa PERSON that's a great question and I think that a lot of it comes down to the shape of the curve in terms of interest rate sensitivity When you look at the corporate credit market. Right now, we have very flat curves which from a refinancing perspective is actually very supportive. If you are assuming that a company has a maturity that they've been roll over into 10 or 30 year DATE debt. The increase in borrowing costs does not nearly a significant You're assuming that they're going to be just putting in place more to your paper and more to your paper. So, I do think that you can't kind of overestimate the vulnerability of the economy and corporate America GPE to hire yields in general but there is kind of a lot of nuance in the story. Okay, so the Is where I'm actually curious because there is this belief and Matt King PERSON has talked about this that you aren't gonna sit in the same default cycle. This time around because the maturities have been pushed out because companies have so much cash on their balance sheets. Do you agree? Are you going to see pockets of real serious distress? As you see Higher rate for a longer period of time. So I think that the default cycle is probably going to look a little bit different. We do have an expectation that heading into next year DATE default creep higher not from a kind of glue and doom perspective could not a toxic brew as Tom PERSON would say but definitely a closer to normalization of Long-term default rate. Now, one of the things that we're observing is there's not a really acute pocket of stress in a specific sector. It was energy for, you know, much of the past 8 years DATE . It was telecom at one CARDINAL point. It was autos at another point. Now, instead what we're seeing is these kind of specific Points where there are companies that just got their balance sheets highly leveraged. There were some sort of specific catalyst for that business that has been problematic and the benefit Corporate America for the past few years DATE is that all of those ultra low barring costs really buy a lot of time in a rising rate kind of challenged economic environment. Wait, one CARDINAL more quickly here if we could. If you do IG, you know, your legendary Wells Fargo ORG over the years DATE IG ORG distressed and all the rest of it. Do you make a 10 year DATE full faith in credit call? Do you have AA vision of where 10 year old DATE will be under the euro 12 months DATE ? Yeah so we do make estimates for the tenure treasury market mostly because you have to have that to to forecast for the credit markets Go. We have a three CARDINAL . 4 year% end forecast on both the five and 10 years DATE . So still very flat curved. As we did expect that the side is going to hike rates into that kind of three and a quarter DATE , three and a half percent DATE by the end of the year DATE . Curves will stay very flat and then we do have the said kind of staying on hold at the
Into that kind of three and a quarter DATE , three and a half percent DATE by the end of the year DATE . Curves will stay very flat and then we do have the side tennis staying on hold at their elevated level for an extended period of time to assess that lag effects between policy tightening and actual economic conditions. Optimism from Mark PERSON here's the quote a stronger second ORDINAL half CARDINAL recovery in China GPE should provide support for the global cycle in combination with still very low Positioning creates a positive Did a combination of a power will say in the mystery of the data to come should be aggregated together Got payrolls to come before that next meeting. Yeah. Got all inflation too. On September 13 DATE Lisa so the the road to September DATE and September DATE meeting is still a long one. I have a question for you. Sure. Are you trolling Marco PERSON or the Bears when you put that out? I mean, honestly, I'm not, no, no, no, and I, I mean, He's Is the consistent ball and his view has not been very rangy in terms of it's volatility. Very sweet. Right? Absolutely valuable. Forecast will be wrong. I'm not here to say that anyone's forecast will be right by definition. It's just a forecast. Lightning radar. I'm just here to work through different processes and different ways of thinking different framework from Northwestern ORG . They both feel they both sound very vulnerable this morning TIME . I also as I Hey Facebook Recovery in China GPE . To controversial. There's a fly separately. It's a controversial point. That's it. Hey Facebook yes. Bullish person to come in and absorb it. Here from everyone. My position Fit your narrative to fit my face. Hey Facebook So we're having Jack PERSON 's mall. Features unchanged on the SMP ORG basically unchanged across the board here a bit more euro weakness 99 23 DATE . Keeping you up to date with the news farm around the world with the first ORDINAL word and wish he could the US GPE says State ORG department spokesman says Aran GPE has appeared to drop some of its quote non-starter demands the Biden PERSON administration continues to review the EU ORG 's latest proposal to arriving the agreement curbing Iran GPE 's nuclear program. Has collectively placed a big short across future for a key overnight rate that Inline PERSON with the feds benchmark of that position will benefit if Bed Chesher and Powell PERSON effectively rules out a doubleish pivot when he speaks at this week DATE 's symposium. Price of US GPE natural gas rose above a $ 10 MONEY per one 1 million CARDINAL BTUs for the first ORDINAL time since 2008 DATE that extends a rally driven by concerns that global stockpiles aren't enough to meet winter DATE demand in the US GPE inventory they're well below normal after summer DATE heat boosted electricity demand meanwhile production has grown only modestly And Macy ORG 's has cut it's profit outlook for the full year DATE the guidance missed the average unless estimate still the department store operator also posted second ORDINAL quarter DATE earnings that were better than expected like its peers Mac Contending ORG with shifting cuz you are preferences and shrinking budgets at a time of decades DATE high implation global news 28 powered by more than 2700 CARDINAL journalists and analysts in more than 120 CARDINAL countries Be back.
This has been back. When I started I had no idea it was gonna turn into this. Empire. Hustling And just building, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the craft and do by machine what should be done by hand Do you see that coming Taiwan GPE and Cuts PERSON to come from. We will not just cut and run with unmatched breach and resources More than 120 CARDINAL countries. 24 hours TIME a day. World of politics to the world of business. If you do any kind of business in this country there's a pretty good chance that you're gonna see that business registered in Delaware GPE . Why? Because that's where you do it. And our point was Wyoming GPE can be that venue for blockchain enterprise for crypto Freedom we want that individuality and that's a common theme that brings together bipartisan support for this and Wyoming GPE . We wanna make sure that people understand especially in Wyoming GPE but as United States GPE of the whole, this trend is coming. It's not going to stop. Cryptocurrency version of Silicon Valley LOC . Individualism the independence and the ability to really get things done for yourself and control your own destiny. You get that from a blockchain and you don't get that without it. Pricing is the pricing for significant rate cuts. I think it could be a couple of years DATE . I mean, really get through the, you get to the, if
Significant rate cuts. I think it could be a couple of years DATE . I mean, really get to the, you get to the, you know, mid threes or or maybe even a little bit higher and then, then, you stay there. Target call from Thanks a chief economist fantastic to catch up with him early this with Tom Keen PERSON and Lisa Brammer PERSON some Jonathan Farrow PERSON your market shaping up as follows on a SMP ORG positive a 10th ORDINAL of one% on the last that 100 up by 12 CARDINAL . Yields basically the unchanged down almost the basis point on a 10 year three. 0072 DATE . The trend over the last couple of weeks DATE though higher at the front end will pick up on that a little bit Here we go 4 days DATE a weakness for the euro again negative 016% PERCENT . And the PMI ORG is out of Europe LOC this morning TIME not tremendous not terrific pretty ugly looking at And not just for the euros own time but for the UK GPE as well. It really historic moment Stephen PERSON under to join us in a moment right now on DXY ORG the blended large captain large country index critical Pretty what do you have? Yeah, Tom PERSON . We're looking at the DXY ORG chart because of that, perhaps, a little bit extra waiting towards the euro. That's really seems to be what's driving the entire market. As you see, the dollar straight story, there are ripple effects into the stock market into the commodity market. Am I trying to the day goes back and looks DXY ORG going back to 2007 DATE . We're doing it on log scale and we're also looking at the slope of the last time you saw this kind of acceleration in the dollars. Not just about the Last time you saw it was in 2014 DATE and 2008 DATE what's interesting here Tom PERSON is that those were the two CARDINAL time periods where you saw some significant commodity pressure which brings me back to the Europe LOC store it really is all about the natural gas the oil story that is now press So when we think about that dollar tending to where commandees well it works the other way around two tom So much. The character of surveillance is simply we wanna talk to the best people we can find and we're honored when they come on on short notice. So, he interrupts this morning TIME with standard charter bank. Their global head of Gten FX ORG research Stephen Joins PERSON us on your foreign exchange space. Steve PERSON , let me cut to the chase. What is the character that nature of this historic bout of Euro weakness Well, I agree that it's largely that natural gas story. I mean, you've seen them in in recent days DATE , the recent weeks DATE move pretty much together with Europe LOC . There's a broader global story that the market is panicking about So that your power will say Jackson Bowl GPE . And so, you know, Euro has two CARDINAL strikes against it and which is why it went through parody so quickly. Steve PERSON is the ECP ORG got a role to play here. You know, like, you know, Greek NORP tragedy, there's just not that much that they can do. There's destiny, that's approaching. Yeah, the economy is weak, the, you know, when we talk about supply chain disruptions, we we're not getting our exercise bikes, when they talk They're not able to heat their homes. That's really On sentiments in the Euro in the ECB doesn't have a tour to address it. The UK GPE inflation numbers last week DATE kind of you know I think let people on the market to say why is Europe LOC different and what can ACB do about it and and the market then when you see way sterling is trading and your is trading markets really punishing What's the optimal way to approach the The UK GPE is in at the moment. The situation the ECB is in. It's a very tough situation. I I think that when so much in supply shocks. You you know it's your Central Bank you want to try and smooth your response. The, you know, when you don't know what the duration of supply chalk is going to be, you're really working in the dark. So, I think they'll probably hike less than they should. Next year DATE if you know they come out of the winter and the energy situation is more clear they'll probably hike faster and that could actually give the euros some some legs in 2023 DATE but this year DATE I think it's moving very cautiously See if you're talking about us.
Faster that could actually Euro PRODUCT some some legs in 2023 DATE but this year DATE I think it's moving very cautiously Steven PERSON you were talking about how supply chain disruptions have caused the people in the US GPE to worry about when they get their exercise equipment but in Europe LOC we're worried about how to heat your Start to experience something more similar to the European NORP angst and this goes to this idea of divergence how far the US GPE economy can diverge from the European NORP fate. Commodity Can extend for a long time. We might have to pay more For our energy but we we're going to have it I think the, you know, European NORP situation, if it's very cold winter DATE And if the, you know, accommodation to increase supply doesn't occur. It could happen, you know, it could be an extended divergence. It's not our baseline but Could become if it could escalate beyond where people are currently expecting. Well, you know, you're seeing different currencies react differently. Like, you know, Ozzy Kiwi PERSON , last week DATE , you know, they've done where they like everybody else, not They don't have that kind of exposure. You have the end that's done reasonably well. Again, you know, they they're benefiting from oil prices going down, you know, the natural gas situation isn't this dire for them? Hey hey I think it's horses for horses and then you have you set a currency it's like you know Mexico GPE Brazil GPE some of the EM currencies where interest rates are high so there's a buffer against fed ORG hockey so I don't think you know I I take it to Feders Hawkins ORG it's going to be a broad dollar move we we think it's gonna be limited but you know I think there are different you know circles of curre That will respond differently depending on their vulnerabilities and in some cases their strengths Steve PERSON have you had to take a bet on the next three% GPE on euro dollar High or lower weaker stronger won't you place it? I think the risk is to downside. But if you're asking me that question in January DATE , it'd probably say to the upside. Steve PERSON awesome to catch up Steve England PERSON a standard charted thing really putting it quite simply about the difficulty that Europe LOC is in right now Edgie PERSON and Danny if you had any research published earlier this morning and this is important it's not just Us GPE economy holding gone. Profits will hold on in the face of what's happening in Europe LOC and he said this a severe recession in Europe LOC might not cause a recession in the US GPE but it certainly would depress the earnings of many US GPE corporations it would strengthen the US GPE dollar further which would also depress earnings of US GPE In Europe LOC . What the economy will take Last quarter DATE maybe and I defer here to someone like Julie PERSON and Emmanuel where we're bailed out by strong nominal GDP better revenues at Massa PERSON but yeah I I agree John it can be Forward. I wonder how you gain that out. John, I'm Dazzled NORP and you did so well with Liverpool ORG man you that I I wanna do soccer Tuesday DATE here with John folks it's it's it's it mean the United Kingdom GPE stops for soccer Tuesday DATE thanks to John and I wanna go to Nottingham Tots PERSON oh like a week from now a long ways away and what I don't understand is Notting Has to play the care about cop whatever that is in the Todd PERSON 's don't. So they have to play an extra game in between. That's unfair. Thanks for sharing it. I'm reluctant to offer anything on football any more time. After my addiction further. It's gonna last about a week DATE . Really? I'll keep it Jackson PERSON whole focused into the weekend DATE . Start your Tuesday DATE .
So as you look back on your career what would you say is the best investment advice you've ever received? Probably the best investment advice that I never received. What do I live my whole life around is surround yourself with really good people I thought about it just today like I do many times you know What makes a great investor A great investment firm is comprised to people who are optimist. And pessimist. Realist. In the intersection of the debates that go Wash that wide range of personalities is where you find truth. It's part of the reason I'm so focused and freedom of expression. I see it my own four walls. The the robust and fullsome debates around how we commit our capital. What defines a good idea? What business is to build or pursue? That's what drives the success it's suited out. And I I've been very fortunate in life to have always had a group of friends who really pushed me who make me better And here I get to work with three and a half DATE 1000 colleagues who in their ways make me better each and every day and collectively As a team We've had the opportunity to have an incredibly impact on the financial landscape around the world. I have a baseline case going into September DATE that is 50 CARDINAL basis points that's where I've been since the last meeting but I have an open mind about whether 75 CARDINAL going to be necessary 5075 doesn't just depend on a data point even an important one like the CPI I like to say that we're data depend We're not data point depending. Covering all things crypto the people the transactions and the technology People ask me all the time what is the key to being a really good ambassador I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that Are the internet revolution I kicked up a lot of controversy declaring that the internet had been under hiked. I say the same thing today DATE about the climate revolution. The job to bring inflation back down to the two% ORG goal is far from accomplished. We do have inflation softening, we figured that the peak happened in the second quarter DATE . Before being intellectually honest, we have to set it for some chopping as in volatility through the end of the year DATE . It's gonna be a little bit choppy but overall, we're going back into growth market. Markets are not They're not always rational and they're just sometimes need to be given the alarm about Good morning TIME everyone Jonathan It's August DATE .
Good morning TIME , everyone. Jonathan Farrell PERSON , Lisa Bramlinson PERSON , Tom Keen PERSON , on radio, on television, It's August DATE . This one's different. Winter DATE 's arrive never mind winter DATE 's coming the PMI ORG on manufacturing in the UK GPE at 46 DATE in a Eurozone at about 49 CARDINAL that's some really weak economic data already time and these central banks are hiking into it open question mark it's on the move which data point matters to you John for an exchange Couple of days DATE TK I think we're both on the same page on that front euro dollar can we get used to a euro dollar no south apparently at 99 CARDINAL and maybe a 97 CARDINAL if Matt Hornback PERSON and Morgan Stanley's ORG correct or 95 CARDINAL if Jordan Rochester PERSON overs right Tom PERSON these are some big calls and they don't sound that big anymore we're just around the corner Governor Barely will travel to Will be interesting that photo shoot as they was out of the lodge across the vast acreage of the Bloomberg TV ORG set to the split rail fence John where they look about upon the Buffalo and the bison What are pollen talk about TK weather gonna talk about we've gotta talk about Under control I think we sort of lost lost vision of the numbers we're talking about I lost an understanding yes He's talking about 18% PERCENT on inflation in the UK Natural ORG gas in Europe LOC but more than 40% PERCENT in a single month DATE and taken out the spring DATE peak and charts gone vertical in the last Weeks DATE . I don't think we've really fully understood something really Lisa PERSON is we address with the That is the consensus right now because the fed Go out and good conscience and say that inflation where it is is okay what it is crushing in your words the lower income families and it has been Tom PERSON pretty consistently how how high they can hold those rates though to me is the key question if they go to three and a half DATE Financial markets as we have gotten to know them over the past few decades DATE . Emailed in and said Tom PERSON shut up and get the feel so we're gonna do this quickly on the data and John PERSON I'm gonna look at the equity market a rebound off that down negative 600 Yesterday DATE . Down futures right now, John PERSON , up 46 DATE . Thanks for that. What did you do Tom PERSON yesterday DATE posted a picture of James Milner PERSON shouting at Virgil Van Dyke PERSON and I was James Miller PERSON and you were Van Dyke PERSON and I was screaming at you not to quote the doubt For America GPE . Get to Phil PERSON . Let's do the date here. We'll do it quickly. Your oil I'm gonna save us with a rebound $ 92 MONEY on West Texas LOC intermediate Brent $98 MONEY a barrel. Philip, Camporia GPE was portfolio manager J. P. Morgan PERSON asset management for far more from Mary Adres PERSON . He sent the sizes the JP Morgan View ORG and at the bottom Research not Phil PERSON . It's real simple. You say America GPE 's a place to be. State the case for an enduring investment scene in America GPE . It's probably the more resilient economy to the Gfour Central Bank ORG hiking that we're we've been talking about for Couple of minutes TIME . Also, if you think about Friday and how much is that steak for Friday DATE ? I think Lisa PERSON 's right. They're gonna talk hawkishly but as far as what we have to do, which is invest in the capital market Easter ORG incoming data. I think the notion that markets have to move a material amount based on comments on Friday DATE . We think it's misplaced. So, why is that? 110, your treasuries are back to three%. That's one CARDINAL , two CARDINAL , there is not imminent easing priced in Priced in between now and the end of this year DATE and 140 CARDINAL basis points of tightening price between now and the first quarter of next year DATE also if you think about how This year DATE has been. It's been because there's been nowhere to hide, fixed income has been a very tough place to manage downside risk. We think those days are over. Why? Because
Difficult this year DATE has been it's been because there's been nowhere to hide fixed income has been a very tough place to manage downside risk we think those days are over why because gas prices down 20 CARDINAL Tom PERSON from June DATE that's not the only thing you have airfares down you have owner's equivalent rent which is staying firm but the biggest drivers of inflation we think competit in the right direction and more importantly tips market is saying I mean that's a bigger surprise than what Until the end Yeah so the leadership in the equity market we think comes from the growth parts of the market that were completely beat up this year DATE with rates and just to throw another another Yankee Reference in here if yogi barra the great yogi barrets not over till it's over if he Talking about the fixed income markets he'd be saying just because the feds raising rates doesn't mean rates need to rise and why is that it's because fixed income is back to where it should be as a ballast in a portfolio and if you're investing in the equity market Index was down 12% PERCENT at the worst point. John PERSON , the worst year ever for the Ag ORG was 1994 DATE . Okay, and we were down not two CARDINAL . Nine%. So, I think the that the the environment for investing looks so much more supportive This year DATE because of the the sheer fundamental ability to manage risk which was missing for most of this Underscore PERSON your point are you saying that people who think that markets have gotten ahead of themselves and that financial conditions have loosened too much for the feds comfort have gotten way too cute about it and that this Okay that the real easing that we've seen in financial conditions through the rally and equities through the rally and bonds is just fine. Yeah, I think so, Lisa PERSON , I mean, you had financial conditions As measured by the golden financial conditions Obviously, off the tights. However, they should be off the tights if inflation peaked in June DATE which is which is our hypothesis. You Under overstate Lisa PERSON the effect of gas and commodity prices and how much pressure that takes off the federal reserve now Yeah so we're eight and a half DATE now by the end of next year 2023 DATE if the tips market is right if our forecasts are right you're between two and a half DATE and three% GPE heading in the right direction now John that's why 140 CARDINAL basis points of tightening still priced in. There's no victory declared here from the Federal Reserve ORG . I just wanna be clear. They will continue to tighten. We just don't think that the pressure of them becoming more and more hawkish at for every meeting is the same as what it was in those really chaotic and frenetic moments and asset markets in June DATE . Phil PERSON , let's say that Yan Hati PERSON is Some people have feared but holds them at three and a half percent DATE for a prolonged period of time possibly years DATE . How does that change your narrative? How does that change? Your thesis about growth equities. Yeah, that sounds like a Brazilian NORP economy actually Lisa PERSON to us if they're not imminently easing by imminently I mean in the back half of 2023 that means that this race Inflation rolling over or growth rolling over is one by growth in the resiliency of the US GPE economy and I think if you look back at the last cycle Lisa PERSON even if you have trend growth or a little bit Growth stocks A good environment for grow stocks what you can have is a is a revisit or retest of that anxiety from early in the summer when commodity prices Spiraling inflation out of control which puts a ton QUANTITY of pressure on long duration equities or or mega capital stocks. So, it's still a sport of environment. Before we go, you can squeeze in the Take a dick at the Red Sox ORG if you want. Not the Mets ORG . Yeah. Right. Thank goodness. That's a good thing. Take anything to say on that. You can let that go. My childhood was one CARDINAL of a review mirror. Yeah, it's very important to understand. Six CARDINAL .
You gonna let that go It was one of a rear view mirror. It's very important to understand. Therapist. Seriously. Well thank you Phil Camperelli JP Morgan PERSON asset management it's okay Tom PERSON . To feel vulnerable. For for Red Sox ORG baseball. Yeah, I feel it. Frank Millzone PERSON was our third ORDINAL bait or third ORDINAL baseman and you know, we had Ted PERSON . That's all we had. It's rads. Not good for the Red Sox ORG , not good for living. They're rebuild. Mr. Henry PERSON 's having a tough year DATE . Yeah, they're rebuilding. Okay. No. Alright. Let's get to the market. We'll let that go Tom PERSON . You take a beat I'm unfocused. The essence of what Phil PERSON saying here I guess it's that we go back to the old playbook. Yeah. Bramo ORG . Rates will have to climb a little bit more but ultimately they're looking for inflation to fade and growth equities is where the leadership comes from dance hazooki of Richard Bernstein PERSON on the show last week DATE pushing back against that And capital group a number of big fixed income investors who say that this inflation is different it has a stickier feeling and it has a longer shelf life because of some of the structural changes with reshoring with onshore and with deglobilization or perhaps a shifting globalization how does Fit PRODUCT into his thesis of rates not having to rise even if the fed ORG raises rates right that we can go back to what we have once known Prices that you need to pay to get inflation back down to two CARDINAL . Three% GPE . And a lot of people are saying that it's gotta be pretty significant. That's the Bill Dudley PERSON a point. That's the Larry Summer's PERSON point saying we have to be honest about the pain that the economy has to suffer. You know, a lot of people disagree. It's a toxic It's a toxic group. It's always a toxic. It's a toxic, you know, toxic brew of tang. Do an okay TK So right. I've lost focus. Let's just crush my shoulder threads. It's coming very shortly. Gas prices in America GPE . Should say gasoline crisis. There you go. America GPE . Love it. Great days DATE . Amazing. 73 days DATE . Please you've got seven I would watch Sterling Like a Hawk Thanks EVENT for sharing. New york GPE . Somebody get me in here near again so Keeping you up to date with news from around the world with the first ORDINAL word I'm risky good chance sticking with that story gasoline prices in the US GPE have now bought them for 70 days DATE in a row that is According to the auto club triple A pump prices are averaging $ 389 MONEY . A gallon CARDINAL that is after reaching what was a record high of around $five MONEY in mid June DATE . Maybe coming to pause economic activity in the eurosone fallas second month August DATE drop was driven by manufacturing still the post lockdown rebounding services like tourism almost ground to a halt consum Been hit by big jumps in both energy and food costs The US GPE government reportedly has recovered more than 300 CARDINAL classified documents Donald Trump PERSON , since he left office according to the New York Times ORG , that includes papers returned in January DATE , a second ORDINAL set given to the Department ORG in June DATE and the document seized by the FBI ORG at Mar a Lago LOC the time says some of the documents came from the CIA ORG and the National Security Agency ORG . In Malaysia GPE former premier Naji PERSON and Brazak will serve a 12 year DATE prison sentence after losing his final appeal in a trial linked to the multi-billion dollar MONEY one MDB scandal. The court walling will That must be held by September 2023 DATE Macy ORG 's has cut it's profit outlook for the full year DATE the guidance miss the average analyst estimate still the department store operator also posted second ORDINAL quarter DATE earnings that were better than expected like its peers Macy ORG 's is contending More than 120 CARDINAL Countries. I'm really good at this. It's boomberg.
What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology. A lot of innovation has trickled down from the world of high tech engines and it hasn't just found a new life in road cars. F one CARDINAL cars have long been thought of has the peak of cool in technology in them is also helping to cool down our produce aisles engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company air foil to help reduce the energy consumption of supermarkets the device they're building is based on the design of an F one PRODUCT cars They estimate they can reduce supermarket energy consumption by 25% PERCENT one innovation from F one PRODUCT is also helping hybrids reduce their carbon footprint that's curse or the kinetic energy recovery system and common parliaments is known as regenerative breaking and works Recovery system looking to harness the heat produce from breaking and the engine exhaust that could allow cars to generate the same power using 30% PERCENT less fuel. Climate change. The markets are preparing to close but the day is not over yet. Lot of volatility right now. Upgra Mark PERSON it. It's gonna be short term. Access the financial world on demand Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Economic policy symposium. Discuss the economic issues and solutions that keep the world's money moving We're talking about households.
We're talking about households that sing a Quin Tuppling PERSON in their energy bills that normal household paying you know over a 1000 lb a month for electricity it's it's a shark that is not going to be able to be absorbed. If I don't arrive at Jackson Hall FAC airport On Wednesday evening TIME without that music plan Tom PERSON and if you're not there ready to pick me up On horseback to take me to the hotel I'm gonna be very disappointed Expecting before years ago DATE we that is around 2010 You know, we went up. We we and I went up. This is coming out of the Jackson Hall Airport FAC and you go north up to Jacksonville Valley GPE or get like the third ORDINAL of the way halfway to Jellystone National Park LOC and I know it's on the left and it's all a beautiful in that but we Horseback PERSON thing and it just we retired by the time we got there we're talking about that's just a lot of work you know I just had with the symbolic cuts for this one Tom PERSON . So maybe we do horseback too to the hotel from the airport. Just some of us think about it. You know. Right now interview of the day DATE as we keep you informed as you did with Steven England PERSON or standard chart The currency market to drift away from the real struggles in agony of Europe LOC and hydrocarbons On what has been unspoken natural gas is a moonshot in America GPE is well Steve PERSON there is the spread out into March DATE and April DATE called the widow maker Which is the estimate of how low inventories will be How low will inventory be when the widow maker spread matters? Yeah absolutely this Friday DATE is the difference between gas delivered for the final contract this winter DATE approach and winter DATE in the first ORDINAL conflict of next summer's DATE meatball season You're not spread right now in the month of August DATE is trading as if we are in the dead of winter DATE it is a clear signal about the market is betting that we're going to be short gas throughout this entire winter which is a problem because at the current rate we're entering winter DATE with stocks at about 200 CARDINAL BCF below normal well below the Stocks are going to remain low. Problem for our winter DATE heating bills because not only is natural gas prices tripled over the last year DATE but two CARDINAL oil stocks, heating oil stocks, here in the northeast, the New York GPE harbor for 20 and a half percent DATE below normal three 1 million barrels QUANTITY below normal which is going to be a problem for people who heat their homes with oil primarily in the northeas So, as we look ahead, we spread their telling us the market is short. Our product, winter DATE product, enhanced higher bills this winter DATE . Are we gonna run a jet fuel? I mean, what's the use of fuel in the northeast? I know it's a heating oil region and all that. But like our viewers and listeners supposed to say, OMG ORG , it's gonna be like Europe LOC . I'm not quite like Europe LOC but we're certainly setting up the Domino PERSON 's to be like Europe LOC in a couple of years DATE . Of course, that translates into natural gas and right now, as we know, Europe LOC is very short, natural gas, primarily because they put all of their eggs into the basket of a tyrant and that tyrant now is keeping supplies short That supply gap is being filled in part by US GPE LNG ORG but back at the start of the summer DATE we had a petrol excuse me a export facility that went down which accounts for 20% PERCENT of US GPE exports of natural gas which primarily would go into Europe LOC now that facility is going to come back online partially in European NORP gas prices yesterday DATE traded the equivalent Check this out and equivalent of $ 470 MONEY barrel crude oil. So, if you can explore natural gas, you are exporting everything you have right now. Facility went down that actually lowered prices in the US GPE and when it goes back up people are expecting it to cause prices to go up because of what's going over to Europe LOC are we pricing in a full seizure or a full closure in terms of the North St one LOC Pipe I mean in a liquified natural gas flowing
Going over to Europe LOC . Are we pricing in a full seizure or a full closure in terms of the North St LOC one CARDINAL pipeline and the and a liquefied natural gas flowing from Russia GPE to Europe LOC ? Yeah, to your point, yes, it's an excellent point and and that is I do believe part of what is happening in that back and that March April DATE spread. I wanna put a cabinet out there. That March April DATE spread is probably the most liquid spread in any commodity market. Highly traded, highly speculated on this was the spread that blew up a nine 1 billion Back in 2006 DATE because they were playing games with it. Traditionally, mathematically statistically, what you tend to see is the March DATE , April DATE , the March DATE contract tends to lower get weaker relative to the April DATE contract as we go through winter DATE . So, we should keep an eye on that but right now, the Because of your points with regards to the lack of supply both here in the United States GPE and Madrain that will see because of your is keeping that back end of the spread very high and which means we're gonna see very again a high winter DATE heating bills and likely high next Air ORG conditioning and dulls because natural gas is such an important feed stock into electricity generally. Steve PERSON , just quickly, I saw the headline from Opec Plus From the soundies I had no idea what they were talking about can you just digest that one CARDINAL for me and translate it Yes. So what the salaries were saying essentially is there's a major disconnect in between the physical market the actual market that they they trade and the future's market the paper market which again Is very high in speculation. So, the future's market has been very low relative to what the salaries are seeing in the physical market. So, they came out yesterday DATE with a pretty hawkish view which sent oil prices screaming higher that they might actually have to cut production I would really caught the market off guard but you know, interestingly enough, that headline came out about 2 hours TIME after all the headlines were breaking that the west is about to make a deal with the Iranians NORP . I'm very favorable terms to the Iranians NORP which again is Saudi NORP 's are not very happy about so you tend to see a bullish or a Headline NORP coming out of Sally PERSON every time you hear a Doubleish NORP headline coming out of Iran GPE so it is a game of pushing pull on the G political 30 seconds but it's so important. I never know what to do with those of Ryan PERSON headlines. Would they actually mean how close are we to a deal? I feel like we've been doing this now for months DATE . Yeah, we have been doing it for months DATE and my concern was The administration because there are dire states with regards to midterm elections in high end due prices. They were going to strike a deal with Iran GPE . I'm still skeptical. You know, maybe it's a Political intentions are not a good stuff to keep on putting money into their state conference Yeah. So, I hope but probably we'll see a deal. Thank you. We go to start of the archives. Moving from the airport and they're up past moose wyoming here on beaver creek on their way to Jackson Hall FAC . Will you drive it? Kathleen Yes. Do they have surround sound so we can play that music? Hey Facebook
Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE the scooper's broken by Bloomberg PERSON 's Amanda ORG The difference between endless research and a winning strategy To improve your firm's productivity and profitability Bloomberg Law PERSON combines the latest in AI GPE powered tools and in-depth analysis to accelerate the research process To grow your practice and make better use of your valuable time. The difference is Bloomberg Law PERSON What do you think of when you think of a battery For most it's what we used to power devices for both work and play and maybe even your car Over the past few decades DATE , they've gotten way more powerful, long lasting, and affordable. But all of this is just a prologue to what the next batteries are going to do. Drive to a increasingly renewable power driven grid we also need to be able to store energy and release it later to cover those periods of weather intermittencies that are driving this new grid that we're in. It's a multi-trillion dollar MONEY opportunity It's imperative that we figure out the solution here How we store energy on a massive scale is in many ways the central challenge of the fight to stop climate change. Bloomberg PERSON Do you see that coming 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg Let's PERSON call it two CARDINAL tenths of one% ORG yield higher by three CARDINAL basis 305% PERCENT . On a 10 year DATE and if you look at foreign exchange the dollar stronger again against the Euro Euro Week LAW four CARDINAL straight session of this 99 22 And we saw that yesterday Tom PERSON . Yeah. We're down a few tenths of one% ORG on that currency pair. And then I think by the end of the day DATE we had a move of almost one CARDINAL full percentage point. For those keeping score at home I would also focus on Dollar MONEY EN 137 50 for what it's done which is it hasn't moved. If yen was to give away 138 CARDINAL boy with that change the dyna A lot exceptionally strong set of conversations today DATE on how to use a golden sax joining us and we continue strong now with Steven Rasciuto ORG to say he's chief US GPE economy mister Mizua Securi's PERSON barely describes their desk with Dominic ORG constant Stephen Rachute PERSON of folds in a massive macro view A calculus of GDP in America GPE Steve Roscioto PERSON when you talk to Dominique NORP in the two CARDINAL you get together are we in recession The NBA ORG .
Make a list of GDP in America GPE Steve Roscioto PERSON when you talk to Dominique NORP in the two CARDINAL you get together are we in recession The NBA ORG will not classify the recession to me you know two quarters of consecutive negative GDP reports you know implies you're in a recession the problem for people is going to be that this is gonna be a very shallow very long recession it's not Be the typical recessionary environment that we've seen in since 1990 DATE which were credit cycles nor is it gonna be the typical inflation cycle that we'd experienced in the post war period up to the 1990 DATE 's. It's a Very different cycle. It's a long shallow side. Will be a more sustained view of interest rate strategy and not the foolishness of the when the rates come down. Oh that's exactly been our call long in here that we were basically looking at a dynamic of a pause not a pivot the question that we're still debating is it four% or is it something north of four% I think we have to give to Four% and the last time I was on we were talking about it we were pricing three and a half DATE now we're pricing something in between the three and a half DATE and the four CARDINAL I think we'll get to the four CARDINAL and the hopefully that will be the end but it may not be the end of Area. Market pricing is the pricing for significant rate cuts. I think it could be a couple of years DATE . I mean, really get to the, you get to the, you know, mid threes or or maybe even a little bit higher and then, then, you stay Because I think while inflation will look a lot better a year from now DATE I think it'll still be significantly above the target race to what and hold for how long race to three three and a half percent CARDINAL and hold for a couple of years DATE Steve PERSON would you think of that Well I I think we're gonna keep on moving higher than that. I don't think three and a half DATE is the top. And nor do I think necessarily we're gonna hold it for several years DATE . I think with this clearly an argument to be made that we're gonna hold it through 2023 CARDINAL but where we going 20 Before is a very very different animal altogether cuz you have to look at what's happening in the currency and you have to look at what's happening with supply chain related issues and then you have to look at the demographics in the labor market environment and it's this tug of war that we're gonna see from a stronger currency supply chains easing up versus the Related pressures that are being dominated by the demographic issues in particular the reduction in the number of workers from the millennials to the generation Z which is now entering the labor force so we might wind up in an environment where the federal reserve ORG has to sustain higher rates on a longer basis than we've seen in here for quite some But again what the starting point is is still an open book. Beyond three and a half percent DATE . What's the end target and why especially if they planned then take them down to something lower over Return. What again do they plan to take it down to something lower over the longer term the real question is how does this labor market dynamic play out you can make a very very strong demographic argument that the labor Higher level of interest rates going forward. The question always is gonna be what level of rates will that be sustained at? But a quick return back to the near oh interest rate environment. That we've been anticipating is go or that people have been Anticipating ORG is gonna require some kind of credit event to unfold in the economy and when you look at the underlying credit quality of the economy in general there's some pockets where we are concerned but an aggregate the balance each are still very very healthy so what is your top fed ORG rate that you're kinda penciling in here how is that evolved The past few months DATE What it survived a lot I mean over the entire period of of 2022 DATE but but I do think four% is the near term target and I think once we get to four% we will pause for a time whether or not that's a pause to go higher or pause to continue to hold that level on an ongoing basis that's where my thought Steven PERSON side baseball if we've got China GPE with subpar China GPE gross the dynamic of exports minus imports how to
Steven PERSON side baseball if we China GPE with subpar China GPE gross Exports minus imports how does it change and what does that mean for chairman Paul PERSON ? We'll get that comes right back to the currency story because it's the supply chain dynamic. You have a slower global GDP environment clearly what's happening in Europe LOC is creating a wider GDP output gap globally. You have a strong currency which will allow us to import those products on a more on Competitive PERSON basis which will want to dampening domestic inflationary pressures and then you wind up with where does the services dominate over the goods portion of the equation and I think this is the reason why inflation is going to come down whether it'll get as quickly as the fed ORG would like to see back to their target or not I think you'll get there I think it'll get there probably in 2024 DATE I don't think it'll get there in 2023 DATE my first ORDINAL exercise this morning TIME was to look at the Bloomberg GPE financial conditions index for the United States GPE for Europe LOC and a note back over 30 years DATE that this is the first ORDINAL time they've diverged so sharply Obviously there's a war in Ukraine GPE which is What is Bailey FAC say to Powell PERSON or Powell PERSON say to Bailee PERSON on this immense transatlantic divide? Well I mean I I think the situation is the reverse of what we experienced in the 1970 DATE 's where the you know federal reserve chairman at the time Paul Voker PERSON came back from an IMF ORDINAL meeting and was forced to change monetary policy abruptly and cause you know one of the worst macro recessions inflation recessions we've seen In our history and I think all the problems on the currency side of the equation are really European NORP problems and Europe LOC has to address its issues. We can't fix its problem for them. And that's pretty much the same message that you know Paul Volker PERSON got in reverse when he came back from the IMF ORDINAL meeting in 79 CARDINAL . Which was basically you have a problem with your currency. That's why your currency is going down. You have to fix your problem and I think Pal PERSON has to push it right back on them. You've got a problem. You have to fix it. We can't fix it for And this is the different kind of FX war Lisa PERSON we've been talking about through much of this year DATE this is a big problem for Europe LOC and it's kinda strange because 10 years ago DATE this is exactly what they were trying to engineer a week ago DATE they couldn't get one they couldn't buy Now they've got one CARDINAL dramatically weaker euro at a time that they aren't we don't want one CARDINAL . Absolutely important inflation. How much those is also a problem for the US GPE ? And we haven't really talked about Which is how much of a pressure will this be on the balance sheets of companies that sell into Europe LOC that have to deal with the headwinds from a stronger dollar I don't think people have gained that out sufficiently well the multinational is gonna have a problem Untake ORG but that's a corporate profit story. What it means for the broader economy. The other issue that we've got here as well, Steve PERSON . Thomas, important question, what does Governor Bailey PERSON say to chairman Powell PERSON ? Governor Bailee PERSON is seeing economic weakness right now. In a more pronounced way, then chairman Powell PERSON is Hasn't seen the year over year DATE peak inflation you've got him forecasting something close to 13% PERCENT you've got city saying it might be 18% PERCENT Steve PERSON isn't that the bigger difference right now the transatlantic divide is that the US GPE might be able to take some very very small amount of comfort from this idea we might have seen peak year DATE over year DATE inflation for Europe LOC and the UK GPE is it still in their future Well again this comes down to the fact that you remember the way we broke the back of inflation here was not just a monetary policy scenario you know the supply side revolution failed in terms of many things but by breaking the back of labor through firing air traffic controllers we did a lot in terms of changing the labor market dyn Which was our problem back then. So again, you have to push the blame back just not on central bankers, central bankers have to push blame back on politicians and say, you have to correct what you've done from a policy standpoint that is put us into this And it is your responsibility now to take the steps that are necessary you can't expect central banks to solve all of the world's problems stay for sure Steve PERSON , thank you sir. Looking ahead to an important meeting later this week DATE in Jackson GPE , Hawaii GPE . Governor Bailey PERSON will be there. Tom PERSON and Powell PERSON . Who's there for ECB ORG , Lisa PERSON ? Yeah looking forward to that as well think we're gonna hear from all three CARDINAL at some point Tom PERSON . It's gonna be I I don't know what to make of it Johnny PERSON I I just think
Schnabel. Yeah. Looking forward to that. As well. So we're gonna hear from all three CARDINAL at some point Tom PERSON . It's gonna be I I don't know what to make of it Johnny PERSON I I just think if the market is here where is sterling where is Euro in 24 hours TIME where are they in 48 hours TIME you're gonna tell me that they're gonna have a normal dialogue with a 116 CARDINAL lb I don't think so 98, you know, I'm we came close this morning TIME . Yeah, I don't wanna oversell it. I don't wanna hype it. I mean, just you know, you and Lisa You know part of the way I don't Hey routine ourselves up for some market moves in 4 days DATE it makes a speech possibly more Did ORG n't we ever thought? The FX ORG channel is tremendously important. Because it's Lisa PERSON said you're importing inflation. Arguably you would want a strong account seat. European the Bank of England ORG and the ECB. They come buy one right now. And the complication they added complication it Really complex when you think about it this way is can you guarantee that a larger rate hike from the UCB ORG or the Bank of England ORG but actually lead to a stronger currency or we now just trading gross differentials Lisa PERSON because it would hammer growth that's It would a lot of people seem to say because right now the weakness is not have anything to do with ECB policy it has to do with the ramifications of a natural gas price that is surge more than 100% PERCENT in the past few months DATE We'll be talking about horseback riding, how do you down to the opening bath? We won't, you know, we won't. Global investments in David Leberts PERSON of JP Morgan Asset Management ORG to guide you through to the opening bow I can't do that Tom PERSON . Can you do that? I can't do that. Hoop like you do I'm a good hula hoop. I'm not. Why would I be a good Some of the stories I've heard John. I don't know what time it is. That makes so much sense. His wedding in Italy GPE dresses a cowboy. Pictures Cowboy ORG on Thursday DATE Yeah you got a funding people. Spurs. Other dreams on. People are wiming a less prone to being offended by things like that. I I think they've got a high tolerance level Thanks so much. Features unchained they didn't welcome it in Pulia ORG . What are you doing down here? Doctor Hey portal Let's go a little bit longer. We've got about 50 seconds TIME if you wanna fill it. Got things to say. I got pivot. You know. Pivot. I I got pivot. I'm sorry. The gloom is out there and I'm listening to the bulls trying to discern what the bulls are saying. Well, I've given you the bullish fig from Mark Show PERSON for a JP Morgan. He thinks that's one Would just Under China GPE will pick up and get better. Of maybe we could use this music. Well, I would like tomorrow DATE . What would like tomorrow DATE is the music used on the promo to go out to the breaks Hoping that we'll stop. Hey Facebook I got nowhere maybe flying burrito brothers ORG . From New York City GPE this is Bloomberg PERSON .
IPad ORG OS 16 CARDINAL by about a month DATE from September DATE to October DATE . Apple ORG made the decision for a number of reasons Including a still buggy stage manager multitasking interface and in order to link the launch closer to the more similar MacOS Ventura GPE . Still it's an unusual move In 2011 DATE Has released it's new iPhone ORG and iPad ORG software updates simultaneously each year DATE around September DATE . By staggering the releases users may find some issues around compatibility with cross device features like retracting and editing messages and iMessage The new shared icon photo library in the new feature for transferring FaceTime ORG calls between iPhones ORG and iPads ORG . It will also make it a bit harder for developers to launch apps that run on both the iPad ORG and iPhone ORG that require new APIs and features found across iPad ORG OS 16 DATE and iOS 16 Regardless it was still of course the right move Stage manager on iPad ORG OS 16 DATE is still quite buggy I don't find it particularly intuitive and it's not compatible with most iPads and many third ORDINAL party apps on the App Store the feature clearly needs some more polish and complaints from consum About stage manager. We'll now no longer probably overshadow the earlier launch of the iPhone 14 CARDINAL . When you think space you probably think One space agency that travels under the radar is easter. Which is surprising considering what the European NORP space agency has achieved and how vice it is to the global space industry. Please collaborate with pretty much everybody who is involved in Space Expiration ORG . But Issa PERSON wants to be a leading force in furthering humanity's mission into space. Missions to Mars LOC . We are going to have to learn, to live, and work off world in a different way. The place where we are going to learn to do that is on the moon. Can Isa ORG help humanity take its next giant leap We had the choice of backing a brilliant card designer by the name of Henrik Fisker PERSON . Ambitious slightly crazy entrepreneur by the name of Musk PERSON . Roll. Remove the wrong decision. But Tesla ORG did very very well and so did electric vehicles. What I'm most interesting and one of my most favorite people on the planet. His name is John Dore PERSON . He's chairman of Planner Perkins ORG , the author of Speed and Scale. It is a conversation with David Rubert PERSON And I really can't say enough about that. Look for that tonight TIME at 9 PM TIME . Lisa Ramerson PERSON , Tom Keen PERSON with mister Rubenstein PERSON now. On a guy David, John Door PERSON , Intel ORG was 3000 CARDINAL employees when he joined. It's now well over 100 1000 even That they have and what I find so interesting David Rubenstein PERSON is this is a guy that's lived the boom of the young
The challenges that they have and what I find so interesting David Rubenstein PERSON is this is a guy that's lived the boom of the young turks of silicon valley and now they have to make a generational shift what do you say about the challenges of a generational shift Our tech wonders. Wow he did incredible things in the internet era and he was an early backer of google and an early backer of Amazon ORG and a result of that he's been able to make recently the largest gift in San Francisco GPE $ one MONEY . 1 billion Create a sustainability school and that is the result of his really smart investment decisions during the internet era. Now, he's focused on climate change and that's his insole investment focus as well. He's giving a lot of money for philanthropically there but also he's now making investments in all kinds of companies that are likely to have Pack from climate change. What is he saying about the people that literally he burst? I'm absolutely fascinated. The shifted amazon, the shifts it google and on and on. How did he address this generational challenge of people who think they're different than Colgate Palma PERSON or John Deere PERSON ? While clearly people in Silicon Valley LOC who get money from firms like Kliner Perkins John Door's ORG firm obviously have large egos and think that they're gonna change the world in some As they do in some cases they don't he's unusual in that he really really spends enormous amount of time trying to figure out how he can help these companies he doesn't just give a money but he's willing to work around the clock to make sure these companies succeed and that's what he did with Amazon ORG and Google And ORG had a big impact on them. Now, he's doing the same in the climate change era and I would say that he's motivated to do this and part because when his daughter, one CARDINAL of his two CARDINAL daughters watched inconvenient truth about the climate change problem, his daughter said to him, you Your generation screwed up this country and screwed up the world. What are you gonna do about fixing it? And said motivated him to actually do something about it And now that's what he's really dedicating the rest of his life to do. Over the past year DATE , we've seen a little bit of a reversal in some of the efforts toward the greenification of the energy supply we've seen a reversion back to coal fossil fuels in the wake of some of the shortages in the and the Russian NORP invasion of Ukraine GPE . Did he talk it all Willingness to invest even more at a time when there is a more of a question about the importance of fossil fuels and not discounting them. While his view is we don't really have a choice right now or the planet is not gonna be able to be a survivable if we don't make changes in the way we generate energy for people on the face of the earth so he doesn't really think there Many people have probably said well climate change is something we can worry about in the future and we don't have to worry about conversion to renewable right now but that's not his view. He Is more urgent than ever and he has a very elaborate plan how we can convert our efforts now and using energy from carbon to renewable sources and he's quite passionate about it and that comes through in the interview. The Versus ORG the profits and that has been something that a lot of people have been trying to discern especially with the ESG focus that hasn't always delivered in terms of the returns. How does he sort of purse us out? I understand the ideological drive that he has towards some of these causes but where does he look for the returns to come? Well remember he's looking the back small companies that are gonna grow into the Amazons and googles in the climate change area so when he backs the company it's gonna take 456 years DATE , or so before it might be a parent Whether it's gonna work or not but he thinks we really don't have a choice because if we keep doing what we're doing ultimately the planet won't be survivable and so he's very passionate about it more passionate than he probably was about the internet. David Roomstone PERSON in a day-to-day grind of David Rubenstein PERSON over the years DATE . Europe LOC have a John Door PERSON why doesn't Asia LOC have a John Dora PERSON of course the backdrop here is a tobacco softbank but why is it just about America GPE that we have a John Door PERSON ? Well, clearly, America GPE is more entrepreneurial, I think than Asia LOC and more entrepreneur than Europe LOC . We have a much more bigger venture capital world than either Europe LOC or Asia LOC and I think John Door PERSON is the person of a vacation Of what our venture capital world can do. It has a very talented people who've been trained as engineers.
Capital world and either Europe LOC or Asia LOC and I think John Door PERSON is the person of a vacation of of what our adventure capital world can do. It has a very talented people who've been trained as engineers as as John Door PERSON was Over the years DATE but there are many other people like him and your corrective pointing out there aren't similar people are not very many of them in Europe LOC or in China GPE . David PERSON , thank you so much. Congratulations on the support interview tonight TIME . Thank you. PM. David Stay PERSON with mister Dora Planner PERSON at Brookets. Really looking forward to that. Moment to go Steve PERSON or his colleague Dominic Constom WORK_OF_ART is published at Missouri GPE . I'm gonna call it a pre Jackson PERSON whole note and Lisa, Dominic Constant ORG doesn't mince note it means words rather within the dynamics he's always looking at. Is this That will further front load or is this a fed that will find some form of steady state that's the debate Gaming out system which we've been trying Terminal rate Unsustainable versus something that's needed for the inflation that we have. Investment rates helped in Bit more because her husband is pivot to higher quality but there is a concern and this is what we're talking with when he sees her about perhaps there's not gonna be the default cycle of your. However, if you get benchmark Rates that present an alternative then what is the argument to go into leveraged companies at a time where Dominic Constem and and and frankly Steve Rascito PERSON were saying we could see a prolonged No. Companies that have to grow into their capital structure. More difficult to see. Major shout out here is we get ready to go to Wyoming GPE and Qantas last night. We had a phone call as we're down 600 CARDINAL points and the team blew up the show today to give you the best in conversation with Angle ORG near a standard charter and doctor hotsy is a golden sax among others. Let me do a data check here to stagger into the 9 o'clock hour TIME . We had green on the screen, a nice elevation, now red future's negative too, down futures, negative 24 DATE , the Vix Doug PRODUCT gives me nothing 23 CARDINAL . 8230 spread, very Disinverts Basis ORG points well worth watching a story in foreign exchange the frontline DXY ORG index 107108 DATE stronger dollar 109 CARDINAL right now Euro a oh. 9926 DATE Sterling Farrells Brooks stay with us this is Bloomberg GPE good morning TIME .
When I started I had no idea it was gonna turn into this. Empire. I don't have any investor. All this is all money in. This is me going on hustling, bringing that money back, and just building, building it, building it, building it. Yeah, I think about a person that was homeless at one CARDINAL point. Didn't really have any money coming in. The fact that this person was relentless and just determined to succeed and not let rock bottom define him as an individual. I can take things and put them together and take them apart and make them better and put them back together I respect the crowd so I don't wanna minimize and disrespect the value of each step of the crowd What should be done by hand. Doesn't just depend on a data point even an important one CARDINAL Data ORG dependent we're not data point dependent People ask me all the time what is the key to being a really good investor? I tell them it's the surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet Greatest investors in the world. Would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Live from New York City GPE this morning TIME . A good morning TIME . Good morning TIME . Give it a calm. After Countdown PERSON to the open starts right now. Everything you need to get set for the start of US GPE training. Live from New York GPE we begin with EPSU winter is coming. You're going to see more headwinds. Hey Concentrated ORG around the winter months DATE . And flexing data headline data you know was disappointing That there is bad news ahead. Euro is beset with a very ugly menu of problems. Massive increases in headline inflation. Surging energy prices. Prices supply chain was. Recession. A mess there's a further downside risk the winter is coming George Bori Emily Roland PERSON of John Hancock investments Emily first ORG to you some people might argue winter DATE 's already arrived Europe LOC . The S and P 500 CARDINAL down three CARDINAL . Four% in 2 days DATE . The Nasdaq down about four and a half percent CARDINAL in 2 days DATE . Do you think reality is starting to bite again? I think it is in this big backup in Boniels LOC that we've seen in the US GPE really is a result of these elevated inflationary readings in Europe LOC you know in the Over 10% PERCENT CPI you're seeing German NORP PPI at the highest level in 70 years DATE a 37% PERCENT increase there causing this backup Which is a trickled over here to the US GPE the 10 year DATE treasury now over 10% PERCENT and that's causing some challenges here to markets clearly Europe LOC is is Likely in a recession.
Over 10% PERCENT and that's causing some challenges here to market clearly your business Likely in a recession already if not going there very shortly and we are seeing a really kind of diverging path of econ A girl is here with the US GPE still holding up a stronger than the rest of the world but clearly some challenges here as far as the global growth picture goes Last couple of months DATE wondering whether we've seen the low on the S and P 500 for the year back in the middle of June DATE we've gotta work out whether we've seen the high on a 2 year DATE yield wrap about a basis point today DATE on two CARDINAL 's on ten's up about five CARDINAL to north of three% GPE on a 2 year DATE 332 George PERSON your thoughts on this 332 CARDINAL the highs of the year on June 14 CARDINAL of 345 CARDINAL in today We get back to those kind of levels do you think? I think we can John Jonathan PERSON but it's it's gonna take some some stronger data you know as we just mentioned you know the date is mixed it's very mixed both internationally and here domestically obviously the world is focused on inflation inflation everywhere inflation is still high that keeps the fed ORG in play and that will continue to put Pressure on the front end of the curve but that that pressure is getting increasingly focused on the very front end of the curb and as we move out 2 years DATE beyond what you're finding is a little bit more of a range pattern for, you know, for the yield curve and so when we look at the curve, you know, twos, fives, tens, all the way out to 30 CARDINAL . Kind of, you know, sort of three% plus or minus around 25 CARDINAL basis points. Seems like a range that we're gonna hold as we go into September DATE and possibly even into the end of the year DATE . We're seeing pockets of weakness but not not a collapse. You know, there's plenty of pressure. There's headwinds everywhere. We're looking for new headlines. We don't see a lot of new headlines. It's the old ones More and more persistent. The one CARDINAL area of weakness that we see housing, housing in the US GPE , very interest rate sensitive. You are seeing the housing data come down, coming well off the boil from a very, very strong market. That is one bit of new news. As we kinda go into the end of the year DATE and the next new trajectory sort of ultimately emerges. JP Morgan PERSON this morning is stuck with me he said just because the federal service racing interest rate doesn't mean rates have to go higher do you agree with that We actually do John. You know, we think that because the fat has made such aggressive use of forward guidance here. We've already seen a lot of the moves in in in bonds actually priced into the markets already and but we actually look at Economic indicators. A lot of, you know, George PERSON made a great point that the date is very mixed right now but a lot of what the Fed ORG is looking at and what markets are looking at are lagging economic data and John friends just don't let friends use lagging economic data Making investment decisions we wanna look at where the leading data is going and the conference board bleeding economic indic Now typically when the leading economic indicators are falling so are treasury yields because investors are looking for safer assets Continue to play out. So, we actually think that we'll see some choppiness and yields here again based on this mix, economic data, but ultimately, as Enter recession. We actually see yields moving lower. That's typically what happens and we do think that this time I will be the same. Page is Max Kentner PERSON over at HSBC ORG . We talked about his research yesterday DATE . I'll share it with you again just in case you missed it. Our leading cyclical indicators all point to more broad base weakness in the second half DATE with warning signs flashing for the housing market for the consumer and also increasingly for Labor ORG markets too. Goes on to say we'd likely add to DM soft friends before sound There's another way of looking at this too. Comes from Marco Kalanovich PERSON over a JP Morgan. He wrote this yesterday DATE . Inflation will resolve on its own as distortions fade and likely drive a fed ORG pivot a stronger second ORDINAL half CARDINAL recovery in China GPE
Morgan. He wrote this yesterday DATE . Inflation will resolve on its own as distortions fade and likely drive a fed ORG pivot. A stronger second ORDINAL half CARDINAL recovery in China GPE should provide support for the global cycle in combination with still very low invest It creates a positive environment for risk assets. George, your thoughts on that. Just those three CARDINAL points that the team over at J. P. Morgan PERSON are making that inflation can result on Recovery in China GPE to support the global cycle you combine that with low investor positioning and you've got a positive environment for risk assets to agree. Well I think it it's a very sophisticated On markets and and I would really we would really simplify that and and we'd say really since the beginning since the middle of this year DATE The world has become a more bond friendly place. Inflation is still high but growth is slowing and central banks are moving aggressively to bring down inflation. Equals a more favorable environment for bond investors and so we think as we just heard you know that there are some relatively attractive opportunities in the bond market it's not quite the time to sort of go super long duration but taking through duration positions make a lot of sense selectively Credit which is also materially repriced taking again selective opportunities and so the prospect for positive total returns and fixed income we already saw a very good month DATE in in July DATE seeing also a reasonably reasonable month DATE and in August DATE we're we're likely to continue to see sort of ongoing improvements in the bond market As that data as the economic slowdown emerges and that to us is is pretty constructive. They're very sophisticated message that we just heard from from some of our colleagues and competitors but I think you can really be simplified down to You know, the world is just simply a more bond friendly place right now. Since you've been very diplomatic there, George PERSON , maybe some strategy just getting too cute about the future. I'll try and keep things simple, Emily. If you're Particularly the long end. Is that complimented by a softer inflation story too? And what is that come from? Yeah, absolutely and by the way, just to simplify things even further, we've been going with the # CARDINAL bonds and chill. Which basically means move up the capital structure, get paid in, come here, you know, you're getting three CARDINAL to five% Quality ORG bonds including investment grade corporate bonds and wait for this mini cycle that we've been experiencing since 2020 DATE to continue to play out until we get into the recession. We do see John inflationary fears receding here. You know, we do believe it Poster to two% ORG but we do ultimately see inflationary fears here turning to growth fears we have to remember that the fed ORG is doing their job here to raise rates aggressively to dampen inflation and ultimately that's gonna turn into And destruction we're already seeing signs of that so we wanna be really mindful about that in terms of positioning across portfolios not only embracing bonds but also looking for higher quality more defensive assets in the US GPE . Raise to what and hold for how long that's going to be a big part of the conversation with chairman Powell Jackson PERSON hall Wyoming when we have that annual fed get together later this week DATE Yahan GPE has yes of Goldman ORG waiting on this Take a listen. Where I would disagree more with market pricing is the pricing for significant rate cuts. I think it could be a couple of years DATE . I And then you stay there From now I think it'll still be significantly above the target. George PERSON what do you make of that? Race two CARDINAL hold for how long he's talking about three. Five% and maybe for 2 years DATE I mean it Three three and a half percent DATE for an extended period of time is not a typical it's very similar to what we saw you know sort of prior to the credit crisis back in 2008 DATE and so it seems like we're going back to sort of the old normal not a new normal and in sort of an old normal where you know hopefully inflation You know, we started coming back down to sort of more normalized levels around three% over
Normalized levels around three% over an extended period of time and you have fed ORG policy that's you know sort of up around that sort of three% level so it it will take time to get there and and that's we I would agree With what we just heard is that you know sort of that expectation for rate cuts in the second half of next year DATE Kind of seem a little less likely than what the market's pricing in but expecting you know sort of fed funds to kinda GPE collapse teams teams kind of unlikely at this point and that you're likely to see kind of persistent inflation and and a Three to three and a half percent CARDINAL for an extended period of time. Back to an old normal. A George ORG 's words. An old normal. Where would you suppose the leadership in this equity market comes from? Yeah, I think if you see, you know, raids elevated here that would, you know, speak to some of the leadership that we've seen year to day. You know, you see value stock Having an advantage here you look down in market cat maybe you see an advantage there as well but our view is actually that you know rates start to come down and the fed ORG does cut in 2023 DATE it takes we have to remember here that Hey Actually be filtered into the economy. We don't think that it's been fully reflected in the economic data yet. We don't think that it's fully reflected. In you know, really earnings data as well. So, as we Watch PERSON that play out where we wanna be allocated our areas like quality which hasn't performed as well as we would have thought this year DATE . So, companies with great balance sheets, more durable profi We expect to see a bid there. We still wanna own some value stocks. We wanna have some sicklicalities, some inflation protection, and the portfolio but I think And value can actually peacefully coexist in this environment. Boris PERSON sticking with us features this morning TIME down by close to two CARDINAL tenths of one% ORG . Let's get you some movers. Here's Abby PERSON . John, let's go beneath the surface. That relatively flat surface after the worst 2 days DATE for the S and P 500 about 2 months and take a look at what's moving more burst up Hey shares are popping on a very solid second quarter DATE off of the pre market highs that may have to do with the fact that they cut the full year DATE view however on of course the familiar story of a bloated inventory big discounting it seems as though investors right now are taking the view that's more of a positive let's see Brookfield PERSON management to invest up to 30 1 billion dollars MONEY in Arizona GPE chip Lawsuit accusing the company That share price the the offer price of I believe 5420 dollar MONEY $ 54 MONEY and 20 CARDINAL Let's keep an eye on that story just keeps going and then finally zoom plunging down 12 CARDINAL . Four% down 83% PERCENT from it's 2020 DATE peak John this of course after they cut the full year Forecast having to do with weakness, relative to their online business, offset a little bit by the phone, and enterprise, but it's clear that those pandemic trends are waning. Coming up the global energy crisis intensify. Infrastructure ORG has been built in Germany GPE and that is short time. We have a problem. That conversation I'm next.
Okay, so you're moving in on me quick. Distracting me with your fancy hands I'm going to deal with your night cuz it's really bothering me. Oh, my nights. Yeah. Yeah. What did you get up to this weekend? You know, just for robot stuff. Lot of chess. I was practicing for for you. I know you're pretty good. Oh I don't like that Hi we'll take this Put over here. Not cool. Alright, I will, I will concede. I can see Very good game. Well played. Thank you sir. Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spooked by the idea that geoporial potentials are rising. Everything you need to get set for the start of US GPE trading Bloomberg PERSON the open with Jonathan Terrell PERSON . Drilling down in the numbers and preparing you as only Bloomberg PERSON get weekdays DATE on Bloomberg PERSON . This week DATE as the world watches inflation rise employment rebound Coverage ORG starts August 25 DATE on Bloomberg PERSON television and radio. We will go out of the use of oil in the end of the year DATE and we are decreasing the imports. Independent Germany ORG looking for alternative energy sources with searching prices crippling economic output boundums prime minister warning the next five to 10 DATE winters five to 10 CARDINAL will be challenging throughout Europe LOC not gas prices searching across the globe a mid mountain concerns over stockpiles this is US GPE gasoline prices We've now team coverage begins right now which acts at AMH here in New York City GPE . Jack PERSON , I wanna come to you. And I think this Oh so important i think we all have a relationship with a barrel of oil that we don't have with gas when you tell me the price of gas I don't really know what that means in the same way natural gas Jack PERSON can you tell me just how bad things are in Europe LOC with winter DATE just around the corner Well that's absolutely right but I can tell you that people here in in Europe LOC now really do have a relationship with the price of gas because we're all looking at our energy bills and beginning Understand GPE quite how dramatically they're gonna increase. So, here in the UK GPE , for example, the average energy bill, I mean, I can tell you my energy bill, for my two CARDINAL bedroom house, costs about 100 lb a month CARDINAL , goes up a bit of winter DATE down a bit in summer DATE , It's now projected to go up to about 400 lb CARDINAL a month and could even be 500 lb a month DATE so that's you know one of one of the key bills that most people pay with looking now at really a Portion of the population you know even the quite well off middle classes now really struggling to pay that energy bills and that's being repeated across Europe LOC depends a bit on different In different places where governments are taking a bigger part of the burden but we're heading for winter DATE now where prices are gonna be eye watering the expensive you know you look at
There's a bit on different policies and different places where governments are taking a bigger part of the burden but we're heading for winter DATE now where prices are gonna be eye watering the expensive you know you look at power prices across Europe LOC and there's something like 10 CARDINAL times the level They were before this past year DATE And and not just prices but actually we're talking about shortages so you have the the finished grids today DATE came out and started warning fins that there's a very real possibility of rolling blackouts this winter DATE cos they're Not gonna have enough power to supply. Er domestic customers. Eject you said A winter. About your prime minister's talking about five to 10 CARDINAL of them. Jack PERSON your response to that when you heard that I know I think that's I think that's right look but I think that we need to take things one CARDINAL step at a time the first ORDINAL issue is gonna be to get through this winter DATE there's a real possibility of Outages across different countries in Europe LOC It's absolutely the case that we've all got used to to to power prices, gas and power prices in Europe LOC being pretty cheap, largely on the back of cheap Russian NORP gas, over the past 10, 15 years DATE . We're not gonna have that anymore. It's very unlikely. Whatever happens, whatever happens in the, in the coming winter DATE , whatever happens in the war. I, it's very hard to see how we're gonna connect, continue to have very cheap power prices on the back of on the back of large supplies of Gas and so I think we need to get used to the fact that energy is gonna be much more expensive. MH we've had 70 days DATE with now of gasoline prices. Coming down. Reason to believe that we can continue this trand. Well there are some reason to believe that given the fact that you have China GPE still in lockdown at the same time you you're over peak driving season of this summer DATE but they're obviously are concerns because you can have switching in Europe LOC if they're Natural gas. They could start switching using oil and also at the end of the year DATE , those European NORP sanctions on Russian NORP crude start to kick in and it's not just barrels of oil, it's the shipping, it's the insurance. So, right now, the administration is going to the midterms with some very good wind in their That he thinks there's a disconnect between the physical market of barrels shipping across the sea as well as the financial market Paper markets that we track every day and the words that he said is that basically they could cut at any time. This is just a month since the president touched down in Jeda and now the Saudi NORP 's are pretty much putting out this idea that they might cut I have to say I was surprised to read that yesterday DATE but I don't follow it as close as you do but that seemed ridiculous to me based on what we were calling for a month or so ago DATE . AMH Jack PERSON , wonderful as always. George, Emily ORG , We just don't usually talk about in Europe LOC going into winter DATE and PMI ORG is this morning TIME manufacturing of the euros zone 49 seven DATE I think we had a 46 CARDINAL handle on the PMI ORG the UK GPE Emily Roland just a final word on Europe Difficult LOC is this gonna be for this economy and for this market? It's so challenging John and it's it's hard to have a conversation on the market implications when your heart just goes out to the folks that are struggling with these Ordinary prices here you know and I think what I was watching for this morning TIME in the PMI ORG data is there has been a bright side in Europe LOC as it relates to the services sector tourism alive and well I know a lot of us Also moving lower this morning TIME which is which is a challenge there. So, you know, from the investment standpoint, I do still think that there are opportunities overseas but we wanna be careful there. Give it Relative economic growth prospects there. George, I got 40 seconds TIME final words sir. Slow down in Europe LOC really reinforces the the argument that the bond market should hold up in here both both government bond markets but also a certain to a certain extent selectively in the credit markets as well while there's some pressure there's obviously a lot of pressure on the economics the value in European NORP credit is actually emerged Flag the US GPE and while there's still a lot of fentivity to slow downs and growth you know pretty much the fundamentals look what we would call good enough for credit and so from that perspective from a bottom up perspective there's still good opportunities in European NORP credit. Alongside.
Fundamentals look what we would call good enough for credit and so from that perspective from a bottom up perspective they're still good opportunities in European NORP credit Catch up alongside Emily Road until the two CARDINAL of you. Fantastic. Difficult. Complex issues for Europe LOC . Coming up the morning TIME calls in later. JP Morgan PERSON 's David Lebavich PERSON , Anticipating EM to lead a synchronized rebounded stocks next year DATE . Her conversation coming up. In terms of green funding. Has committed to doubling the amount of investments in so called green technologies. I think we need more than just pronouncements. We need real money backing, very innovative, startups, and innovative companies in this space. Capitalism. Society is facing, namely, that growth has been present but growth has not been force evenly distributed, but frankly speaking, it's hard to register to be incoming. If you don't have much income to begin with If the government and private sector could work together and collaborate to drive more in a innovative will startups that that can really drive the income growth that the Keisha GPE government needs to redistribute Innovation money and power collide in silicone ballet and beyond. Weekdays DATE at 5 PM TIME in New York GPE and 2 PM TIME in San Francisco GPE A few minutes TIME away from the opening bow this morning. Good morning TIME . Future's basically unchanged on the S and P 500. Slightly softer on the Nasdaq after two big days DATE of losses on both the S and P. And that's that 100 CARDINAL . That's the price action. Here are your morning TIME calls. First ORDINAL up BTIG Dangrani zoom to neutral Without a price target expecting profitability to remain under pressure after it's cordly result. Positive channel checks and optimistic meetings with management Fondy McQuary ORG . Advertising to recovering Q one of next year DATE coming up JP Morgan David's ORG making the case for US GPE equities from New York City GPE
Is there still room for urbanomics to be carried out in full in the way that shinzo arbe imagined it. The economic situation that Prime Minister Kishido PERSON faces today DATE is very different from the one that I'll be Shinzo PERSON or was faced with when he became prime minister 10 years ago DATE . Does Japan GPE need a new policy? Is that what kishida has to learn or are there parts of this that he should hold on to? You could hold on to. I think the main challenge with Japan GPE faces is demography. The population is Women are totally underused in the labor force especially educated women One CARDINAL needs to think about increasing immigration or these are issues that I'll be trying to address but a lot more needs to be done to court and court revitalize Japan GPE . People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world That I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse 24 seconds TIME away from the opening bar this morning TIME . Good morning. 2 days DATE of losses. Two big days DATE of losses on the S and P. Totaling up and mounting up to about three CARDINAL . Five% call to three CARDINAL . Four CARDINAL even bigger on the This morning TIME . Future slightly softer, negative about a 10th ORDINAL of one% on a SMP 500. Other than that, that 100 CARDINAL down a little more but attempt to one% ORG . It's right in a bounce. Switch to the board and get to the bond market. Your tire again. On a 10 year DATE by four CARDINAL basis points. The three CARDINAL . 0535% PERCENT . Cutting through the three% level in the last 24 hours TIME and breaking down Parity on Euro dollar ORG 99 42 and coming very close to a 98 CARDINAL handle 92 30 up let's call it $ two MONEY positive two CARDINAL . Two% this morning TIME We open lower by about a 10th DATE of one% on the S and P 500. Let's get you some movers. His Katie PERSON . John, let's start with Twitter PERSON because there's a lot of drama around this name. You had Twitter PERSON 's former head of security alleging in a complaint that quote there were egregious deficiencies Security protection today DATE that they've subpoenaed that whistleblower that's of course after issuing a subpoena for Yesterday DATE off by three% Moving on we've got some earnings to get to Palo GPE out Networks rather. It's a cyber security firm. It reported a beat and raised quarter CARDINAL and a sock split to boot shares higher by about 10% PERCENT . JD GPE . Com too. Revenue growth. Beat ORG estimates at Second ORDINAL biggest online retailer quieting some of those fears about a Chinese NORP slowdown Least for a day Chinese NORP internet AVR ORG 's broadly higher as a result and finally Devin PERSON energy climbing from the bell that's after US GPE natural gas touch For the first ORDINAL time since about 2008 DATE that's good news early for the energy sector John Devin PERSON 's up 59% PERCENT yeah today DATE there's a Winner PERSON and Katie PERSON thank you. This one's been a loser for the last few years DATE . In a big way. Macy ORG 's. A loser this morning TIME . If you're looking at the outlook getting cut, the stock out by about two CARDINAL . Five%. This is the quote from the company. Continue to tieration of consumer discretionary spending in some of its categories and the level of Within the industry as well as the risks associated with the more pronounced macro Hey Abby PERSON hey John well this
Within the industry as well as the risks associated with the more pronounced macro Hey John well this is an interesting one because we have such a mixed bag this quarter DATE relative to retail and on the surface you would almost think that Macy ORG 's would be trading lower after cutting the forecast as you just mentioned but the stock is actually higher it was all over the map in the pre market down sharply then up as much as five% right now Two CARDINAL . One% not bad for cutting the forecast but you may have really nailed that earlier saying that it's been a loser in recent months DATE . The stock is down so much that bad expectations could be priced in so investors happy about the fact that they actually beat the second quarter DATE expect Now some of it has to do with that weakness relative to consumers really not spending as much inflation but it's also that famili Having the right inventories for what people want. Now, relative to retail overall inflation is really cutting into it cuz it's pretty interesting, John PERSON . If you take a look Retail sales out of 2020 DATE on the rise but if you take a look at retail sales in yellow relative to inflation it's actually been declining since March of 2021 DATE so this is a big part of what Macy ORG 's is dealing with but right now investors with that stock up a little bit seem to think that they're up to the challenge. Well that moves stick. Abby PERSON thank you. This move this morning TIME Much if one I changed on the S and P 500 CARDINAL energy advancing by a little more DATE than two% ORG information technology can you call this about back up by more than about a 10th ORDINAL of one% that's called it two CARDINAL tenths of one% ORG high this morning it has been tough tough For the Nasdaq ORG over the last few days DATE the bears in charge amid the fed ORG height jitters Katie Lyons PERSON real yields back in charge On those inflation adjusted yields are really critical here. Now, of course, we had seen a bit of a rotation back toward tech and growth as yields have come in but as they've resumed their Trajectory in recent days DATE that has led to 2 days DATE before today DATE at four and a half percent DATE losses on the Nasdaq 100 it's worse 2 days DATE going back to the depths of mid June DATE and of course on the year DATE so far we have the 10 CARDINAL Result down about 21 CARDINAL year% to date even worse for the semiconductors off by more than 27% PERCENT . Now, I mentioned that rever Some of the ground and had gained relative to growth that is the blue line there the Generally seem to track each other right now growth is starting to wane once again but as you mentioned John it really is that real yield that matters here that is perhaps the truest gauge Of borrowing cost if we can ever find one. Those are up about 40 CARDINAL basis points just on the month of August DATE . So far and that of course threatens to undermine equity valuations more specifically Equity evaluations and eat into their relative attractive attraction to bonds Johnny PERSON thank you they're pretty nice and really building on that Michael O'Rourke PERSON of Jones trading saying the following despite the risk of environment inflation fear to prompt in bonds sounding and pushing yield tire as such long Asian NORP growth equities are under pressure. You've seen it all week DATE at a close. We did we really saw yesterday DATE John sort of a really decent hair sell off. When you think about Long duration assets and like you mentioned the relationship to yields and really yields as Katie PERSON just pointed out Kaylee just pointed out Say it's really interesting though that we're focused on some of the more speculative parts of the market when you think about this back index the IPO ORG index and the more unprofitable companies the You're trying to get a little bit of a rebound But it is really been a choppy ride in the last few weeks DATE . Now, we talked a lot about bad bath and beyond. There's some fundamental news. We think about some reports about being able Suppliers ORG . To triple C from S and P global ratings but of course just really wrapped up in the meme stock as well some volatility let's say within this stock too but John it really All that. It really sort of has been sort of a macro global story, right? When you think about peak detroit GPE Where we've been a year ago DATE . It really has been coming down a lot across all of these more high beta place. So we've talked about More specular parts of the market the means these high growth areas but it really has been sort of this global narrative as well Tina looking forward to the closer that
Has been sort of the global narrative as well. Tina, looking forward to the closer that a bit later, Taylor Rick's PERSON there breaking it down for you. Allow me to break down the market action right now. Not much price action, relative to the big moose we've seen over the previous 2 days DATE . The S and P up by Ellen PERSON more than a 10th ORDINAL of one% ORG . Talked about where the leadership is coming from from energy this morning up two CARDINAL . Seven%. Been so defensive over the previous few It's kind of the opposite this morning TIME with staples, utilities, and health care mac ORG and health care down by about one four CARDINAL percentage point. The consensus view though is this one. Stocks set for chopping us into your rent. I do think that we're setting up for further volatility in the very short term. We'll continue General uncertainty about where prices are going. What happens if well prices start to rise? What's going to happen in winter? There is this risk of more holish Rhetoric ORG from the feds from the central banks. There's a lot of risk that isn't in the market right now. That's a very challenging, near-term mix for risk assets. We have to set it for some shopping The end of the year DATE . Joining us now is David Levivich PERSON , a JP Morgan ORG , David always good to catch up with you sir. Let's start there. Are you getting more constructive or less so as this year Grasses. So, I I think that from a next 6 to 12 month DATE perspective, it's it's reasonable to kind of echo the the things that that Flew across the screen we think that volatility is going to persist I think that the underlying Well-induced. Forgive me for being the CIO of hindsight capital but clearly looking back to June DATE that was the big opportunity to buy tech. You were more constructive on that. We talked about it, David PERSON . What about now? After that rally off the June DATE low and the weaknesses kick back in more recently. What about now? For investors to recognize is that the direction of travel for the economy right now is is towards one of slower growth and and slower growth implies lower rates lower rates as we know can help support multiples until I do think that while the clouds are looking Is that the old play book then David Back PERSON to have we not broken out permanently into a new regime and I use that word permanently loosely of course but I'm talking about a new market regime with fresh leadership with different dynamics on the growth side of the inflation side. Do you think Go back to the old playbook. So, I I do think that we go back to the old playbook, right? I mean, I recognize it inflation isn't going to dissipate overnight TIME . This is gonna be an Relatively modest inflation and that implies low rates importantly the Particularly 90s DATE and the early 2000 DATE 's and I think one of the things that investors need to recognize Some of these companies can actually be relatively defensive yes we're struggling to figure out what's the right multiple to put on those earnings today DATE but but those earnings to an extent have pro Be all weather over the course of the prior cycle. Hey David that's the destination right now we still have inflation
The direction of travel again is is is towards slower growth and that should inherently benefit those growth of your names. Right now we're still having inflation somewhere between eight and nine% CARDINAL . That's the story right now to get it down to two CARDINAL What's the GDP price we need to pay up to get inflation down to two CARDINAL ? So I think what what's interesting is if you look back over time it is very difficult to get the inflation genie back into the bottle without causing some sort of contraction or without Back into the bottle and importantly you're There's monetary drag The consumer has been beginning to come under pressure and so I do see a path where we don't necessarily have the soft landing It's good to have you with us. Positive not even a 10th ORDINAL of one% ORG coming up disappointing data feeding global recession fierce In Europe LOC you've got the gas issue there's nothing quite to the same degree that we have in the US GPE but it's going to be a slow growth environment below trend the fed ORG once below trend The latest US GPE data up next. No one covers the world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming true 24 hours TIME a day. Bloomberg PERSON your global business authority. I went back and looked and very few secretaries of state in the last 100 years DATE or maybe ever have really gone back in the government Why did you wanna come back in the government for any issue when you're if you've got eight CARDINAL grandchildren you've got two CARDINAL daughters you've got wonderful family why did you wanna come back and and go through this terrible process we have in Washington GPE of getting things Consensus in getting people to agree what you wanna do. It's very simple. We're not in a good track right now. The world is not serious enough about reducing our admissions fast enough, David And the result is that the planner is gonna continue to evolve in reaction to what we human beings are doing to it. Through fossil fuels. Most of the emissions that are going up nowadays into the atmosphere and are creating this increase level of energy that comes from the ocean, goes into the storms, the floods, the rain, all of it is explainable and it's all linked to the changes we are creating on the planet. So, it's very simple. I wanted to come in because I think we have a real change.
Explainable and it's all linked to the changes we are creating on the planet So, it's very simple. I wanted to come in because I think we have a real chance now to make something happen and I think Glasgow PERSON was a major step forward in the effort to do that. I think the US GPE doesn't have quite the same degree of headwinds as as both China GPE and Europe LOC . In Europe LOC you've got the gas issue. There's nothing quite to the same degree that we have in the US GPE but it's going to be a slow growth environment The law trend the dead once below trend What are some terribly economic data out of America GPE with more. Here's Appy. They're certainly is John. We're looking at a big miss here for the S and P five the S and P global US GPE This PMI 44. One CARDINAL that is deeply in contraction it's below the expectation of 49 DATE . Eight CARDINAL this is of course the preliminary reading for August DATE and it's down from the Reading of 47 DATE . Three CARDINAL . There's no way to slice and dice that and make that look good. Especially since many are saying that one CARDINAL reason that we may not be in a recession surface is PMI ORG also miss at 51 CARDINAL . Three CARDINAL and the composite in at 45 DATE now down for a fourth month in a row DATE this is really pretty brutal data suggesting John that again we could be heading toward a recession with one Caviar ORG . It hasn't exactly lined up with the ISM ORG . So we'll see if that lines up with a much more follow dire but that is a big big miss to the downside Abby PERSON . It it Measure WORK_OF_ART there they tend to be larger companies so it's suggested the larger companies have more resiliency maybe a better ability to plan for a recessionary type environment so the smaller to midsize businesses they appear to be getting hit especially in the services sector but manufacturing not too far above contraction either but Overall S ORG and P global US GPE composite PMI ORG they're preliminary reading for the month of August DATE at 45 50 that is the demarcation between contraction and expansion the composite overall deeply in contraction no good not good at all thank you Tell me one thing it does line up with the dates are out of Europe LOC that we got this morning TIME we had a 49 CARDINAL handle on manufacturing on the PMI ORG and the Euro ORG zone I think the UK GPE was something like 46 DATE the SMP global economy sent to Harga ORG saying the following the numbers quote point to an economy and contraction during the third quarter DATE the kind of output Our big scene across a range of sectors as economic weakness becomes more broad based in nature. Good friend of mine, good friend of ours, Guy Johnson PERSON joined us out of London GPE . Guy, that day DATE to this morning, a both side of the Atlantic LOC . Not great, is it? No, it's not great. Actually, I thought we were gonna have the the worst story to tell here, John PERSON , but just looking at that services data On the the the numbers out of the states. Does make me wonder about that. Yes, Really really bad right now. If the PMI ORG data is about momentum, Europe LOC really doesn't have any. The headline number has come down pretty sharply 49 DATE . Two CARDINAL . This is the the headline comp number from 49 DATE . Nine CARDINAL in July DATE . Manufacturing is bearing the that's probably the difference between the states and what we're watching over Europe LOC but actually I think the second ORDINAL derivative you look at what's happening with services John the numbers are not good there either are we're slowing down rapidly major economies are suffering Germany GPE we all know is is kind of on point on this one but France GPE is now slowing very very rapidly as well and the ECB is expected to tighten into this and that is the big Between previous cycles and this one. The ECB is expected to deliver 50 CARDINAL basis points in terms of hikes in September DATE . The question is where do you go from there? There is some silver lining to be found here John That is that some of the inflation components with this.
Is expected to deliver 50 CARDINAL basis points in terms of hikes in September DATE . The question is where do you go from there? There is some silver lining to be found here John and that is that some of the inflation components within these data are starting to to amirate a little bit but But it's only marginal at this point. Hey, guy. I'm looking forward to Chica Ridge GPE and about 10 minutes TIME does Guy Leach PERSON you towards the European NORP coast. Guy, thank you. Look at the move at the front sand. Bit delayed but yields lower by three CARDINAL basis points now at the front and the 2 year about 328 CARDINAL . Equities picking up just a little bit on the Nasdaq off the back of some of that. I guess that might a quarter CARDINAL of one% ORG . David, you're back This. We're gonna tighten into some of this weakness. We'll start with the United States GPE then we'll go to Europe LOC . In the US GPE David, what Jamaica GPE that economic data This morning TIME because I can tell you a different story from 1 day DATE to point to the next. So, obviously, a big miss in the United States GPE and frankly, we've been somewhat surprised with the resilience of the As some of the higher frequency indicators we've been looking at things like jobless claims have been rolling over you know it looks to us that this was more question of when as opposed to a question of if and so Over the course of the We've got this weakness in Europe LOC . We need to factor in as well. David, John Denny PERSON . Much followed at Giant Danny ORG if you had any research said the following a severe Might not cause a recession in the US GPE but it certainly would depress the earnings of many US GPE corporations. He went on to say would strengthen the US GPE dollar Which would also depress earnings of US GPE companies with sales in Europe LOC . David, you factor in that into the parts of the market that you like and the parts of the market you wanna avoid? We we are. We think that the dollar issue is is one that is likely to continue to to play companies for the foreseeable few dry Around the world Over the next 12 months DATE . We believe this is north of 50% PERCENT . You know, as Globally over the course of the coming Final question from me and I've asked this in different ways throughout this morning TIME . Do you think we fully understand what it's about to happen in Europe LOC later this winter based on incoming information? And I really really mean that. Do you think we fully understand it? Because when I hear forecast like 18% PERCENT CPI in the UK GPE and people go wow that sounds like a big number. Do we actually understand what that could mean? To the UK GPE economy to the euros on et cetera. Hey I I don't think that people really grasp the severity of this issue I think at the end of the day DATE we've been very lucky over the better part of the past 5 to 7 years DATE you know really ever since the fracking revolution back in 2015 DATE we we've been very fortunate to have low energy prices you know effectively across the board and and that is a dynamic that is Consumer and there's a whole social aspect to this that we need Long term solution in in going green getting there overnight Big time. David, thank you. David Libovitz PERSON there, JP Morgan Asset Management ORG . Thank you sir. So, what have we got? We got data with a massive downsize surprise in the US GPE . Yields down at the front end and we let out a ton QUANTITY of oxygen out of that strong dollar trade. The dollar index rolling over negative about a half CARDINAL of one% NORP right now. Up next Program I'll get you to to the trading diary a snack
A ton QUANTITY of oxygen out of that strong dollar trade. The dollar index rolling over negative about a half CARDINAL of one% NORP right now. Up next on the program I'll get you to the trading diary. That's next. This is Bloomberg PERSON The Indian NORP city of Jamnigar is a money making machine for Asia LOC 's richest man, Mukesh Ambani PERSON . His company reliance has the world's biggest oil refinery complex here in the city. Jamnagar ORG is also where Ambani PERSON is making his newest bet. A 10 1 billion dollars MONEY investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE . But Barney PERSON is not alone. India GPE 's second ORDINAL richest man Galta Madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism answerity of those green ambitions and those of its two CARDINAL biggest billionaires. Hey Facebook Yes. Let's call it 26 minutes TIME soon equities running in the face some pretty ugly data out of America GPE recoveries up a quarter CARDINAL of one% on the SMP ORG as yields pulling at the front end just to pick up on the Nasdaq by about a half CARDINAL of one% ORG we'll see if this sticks that's the price action hit your trading diary new home Minneapolis GPE fed ORG president Neil Cash PERSON Gary speaking at 7 PM Eastern Time TIME the best GDP and another round of job this claims on Thursday DATE plus the feds annual Jackson Hole FAC get together we're here from chairman Pound PERSON on Friday DATE and you get a ton of dated too we get you Mitch PC deflator and personal income and spending data too from New York City GPE thank you for choosing Bloom NORP TV this was the countdown to be open this is Bloomberg PERSON . Okay so you moving in on me quick Straight to me with your fancy hands. I'm going to deal with your night cuz it's really bothering me. Oh, my nights. Yeah. Yeah To this weekend DATE .
I'm going to deal with your night cuz it's really bothering me. Oh, my nights. Yeah. Yeah Up to this weekend DATE . Lot of chess. For for you. Pretty good. Ooh I don't like that I will take this Put over here Not cool. Alright I will I will concede I can see Very good game. Well played. Thank you sir. You. The difference between missed opportunity And actionable intelligence. Strategic advice Bloomberg Law PERSON offers an unmatched platform of analytics tools and business intelligence. All the help improve productivity mitigate risk and inform decision making for the comprehensive platform that helps you work smarter and faster the difference Bloomberg Law BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus a claimed archival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America ORG What is your base pace for Italy GPE in terms of what happens Pepsi ORG 's number fever campaign in the Philippines GPE has probably gone down in history as one of the biggest Mainly because of a human era that led To print more winning caps A plan Resulting chaos caused riots Unrest ORG . Reporting this story took over a year and it resulted in me flying to Manila GPE in the Philippines GPE to meet unlucky winners. And to find out exactly what happened back then in the 1990 DATE 's. My name is Jeff Mesh PERSON . I'm a journalist based in Los Angeles GPE . I wrote the story for Bloomberg PERSON business week about Pepsi ORG 's number fever campaign. The Philippines GPE is a really interesting country. It's made up of thousands CARDINAL of islands. It's also a country that's very heavily influenced by America GPE . Frank Sinatra PERSON music for example. Pepsi Cola Coca Cola ORG . In the 1990 DATE 's it was everywhere. Pepsi ORG and Coca-Cola ORG were embroiled in what is now known as the Kolar Wars EVENT . It was a fierce battle. Dominance. Number fever was already a really popular promotion. It had been rolled out in America GPE to great success. Pepsi ORG decided to roll it out internationally particularly in Asia LOC . They thought it was the answer to their problems. They thought it could finally help them beat their biggest competitor. Hey I want I want Newspaper Millionaire PERSON . A one 1 million QUANTITY pesos or $68 thousand MONEY doesn't sound like a lot now but in 1992 DATE that was a phenomenal amount of money You've gotta remember that in the Philippines GPE at the time the average monthly DATE income was about $100 MONEY so Imaginations Number fever caught fire in the Philippines GPE Kids were saving up their pocket money to buy a bottle of Pepsi ORG .
Anyone's wildest imaginations Number fever caught fire in the Philip Kids were saving up their pocket money to buy a bottle of Pepsi Squirreling ORG away all of the bottle caps in bags you would walk down the street and people were going through trash trying to find discarded bottle caps It was a national phenomenon Pepsi ORG posted that half CARDINAL the population of the Philippines GPE was playing it. Number five CARDINAL boosted Pepsi ORG sales every month DATE from 10 1 million dollars MONEY to 14 1 million dollars MONEY . It had a huge impact on Pepsi ORG 's bottom line. Number fever quickly became number hysteria Employers winning bottle caps. There was even some murders over overwinning bottle caps. People were fighting in the streets Over these caps. There was signs that they were going to be problems with number fever. Very early. Pepsi ORG had rolled out the competition in Chile GPE and a garbled facts had caused some kind of problem with the winning number. They'd announce the wrong one in Chile Causing GPE riot there was signs that there could be big problems ahead They didn't keep their eye on the ball. 1992 DATE perhaps he decided to extend the campaign in the Philippines GPE and they announced that the competition would go on for a few more weeks DATE . One night TIME on the television news they announced the latest winning number. 349 CARDINAL . The problem was Earlier campaigns so there were literally hundreds of thousands CARDINAL of bottle caps with 349 CARDINAL just floating around the Philippines GPE Of thousands CARDINAL of people all across the Philippines GPE thousands CARDINAL of islands were finding winning bottle caps 349349 DATE . Some people had 10 CARDINAL lucky 349 CARDINAL bottle caps People are dancing in the street celebrating My problems were over. It's still not certain exactly how many winners there were of lucky 349 CARDINAL bottle caps but we know that Pepsi ORG printed over 600 1000 QUANTITY of them. Pepsi ORG realized very early that there was a problem Hundreds CARDINAL of people started arriving at their bottling plants with their lucky bottle caps They realize something was seriously wrong Pepsi ORG tried to solve the problem by offering a small token donation to anyone that brought a lucky bottle cap to their bottling plan But it wasn't enough. People didn't want just a handful of pesos. People wanted their one 1 million CARDINAL peso priors. Within a year DATE Protest LOC and riots outside Pepsi ORG factories would leave dozens CARDINAL injured and five CARDINAL people dead. At one CARDINAL Pepsi ORG factory in the Philippines GPE . A grenade was thrown through the window. It killed three CARDINAL Pepsi ORG employees. Honestly to Rosario PERSON was school teacher living near Manila GPE in the Philippines GPE She was one of the tragic victims of this whole thing. She was walking to a nearby store to buy some rice 1 day DATE when a monologue cocktail was thrown at a Pepsi ORG truck And in a violent protest. It bounced under the truck and exploded. It killed her Innocent bystander who was just a child and injured many others. When I was in the Philippines GPE , I tracked down anesthesia GPE 's daughter, Cindy ORG , and her husband, Roll, It was clear to me that they were still very upset Whole thing. You know, a family had been ripped apart. By this competition. Told me that he'd never remarried. Told me that he'd gone some meat perhaps the executives after his wife was killed He was angry. He he said to them, you know, this wouldn't have happened if it wasn't for you. If it wasn't for number fever. The biggest revelation from my reporting Rumors that Pepsi ORG was somehow involved in.
The biggest revelation from my reporting Rumors that Pepsi ORG was somehow involved in bombing their own trucks. Found a newspaper report with a headline that said Pepsi Goon's ORG Bomb their own trucks I visited the MBI the police department In the Philippines GPE . To cause riots and to cause trouble In order to distabilize the situation and to frame Owners of the coalitions That were there were fighting them to try and curry favor I just thought that was that was so shocking and of course Pepsi ORG denied it but Are that a company would be accused of bombing their own trucks? The contest had sparked so much anger in the Philippines GPE because it landed at just this really weird time in the Philippines GPE history. It was during a crazy election that was With allegations of fraud the Philippines GPE was in a kind of love hate relationship with America GPE They loved obviously the American NORP aid and finances that was pouring into the country but at the same time they yerned for independence they wanted to be their own country. Vicente Philadelphia PERSON A local preacher living in Manila GPE and he hated the number fever campaign. Delfiero ORG thought Pepsi ORG 's number fever campaign was just one of the many ways that America GPE was asserting its dominance over a third ORDINAL world country. He hated seeing his fellow countrymen get ripped off in his eyes. By this huge multinational American NORP company. What's this? Rounded up over 800 CARDINAL winners of 349 CARDINAL bottle caps I think got them all together to soon Pepsi ORG For over 400 1 million dollars MONEY to be divided between those holders of lucky bottle caps Del Fierro PERSON took money from some of the people who could afford it. They paid him 500 CARDINAL pesos to help with legal fees. But for people who couldn't afford the the money he would just represent them Hey He flew to America GPE And he hired to consumer lawyers here in America GPE to take on Pepsi ORG . He had a meeting, a Pepsi ORG 's had quarters to try and resolve the problem. But he said he wanted to take it all the way to the highest courts in America GPE . When those cases were heard in America GPE those courts decided that this was a problem that should be heard in the Philippines GPE not in America GPE . Back in the Philippines GPE Del Fierro PERSON continued his case in the Filipino NORP courts At one CARDINAL stage there were arrest warrants handed out for nine CARDINAL Pepsi ORG cola executives. Which he saw is a big victory. We don't know if those arrest warrants were ever upheld. But it made newspaper headlines across the country. There's been so much Hey kindly to Del Fierro's GPE campaign Tried ORG everything to shut him down They sued him for libel My father had to attend three CARDINAL times a month for a branch 145 CARDINAL and another heating for the brunch 113 also 2 days DATE a month Also there was a timer my father was hospital Otherwise We're not attending the judge will issue one at the festival My father passed away January 13 DATE when then after stay for almost After the death of my father I was inspired to do the website
After the death of my father I was inspired to do the website Mexico GPE will be remembered for what they did to the consumer in the Philippines GPE and to my father When I reached out to Pepsi ORG for comment for this story To anyone who was working at Pepsi ORG that was around in those days. They also said that during COVID-19 they didn't have access to their their documents about this but You know they were very they were very careful to say that they were sorry for everything that happened and we do know that Pepsi ORG did try everything to try and make this right. The Pepsi ORG number fever disaster Cost the company millions CARDINAL . We know that they paid up to 10 1 million dollars MONEY in those goodwill payments But the financial effect After the disaster we know that Pepsi ORG sales debt They were overtaken by Coca Cola ORG again Pepsi ORG 's number fever disaster The legacy of that soft drink in the Philippines GPE forever Some people have certain age won't touch it. For many people, Pepsi ORG is a taboo word A lot of the people that I spoke to were still quite traumatized Experience by that Experience of winning a one 1 million QUANTITY pesos losing it and then returning to their normal life in poverty in Manila GPE The news of the Came out. It was a massive story in Germany GPE . We are following some breaking news coming to us out of Dortmund GPE in Germany GPE . Outlets three CARDINAL roadside explosions triggered at the same time last night TIME as a coach left its hotel in a south of Dortmund public figures commented on a we should not Let them affect our our life. Whoever it was. The media echo went far beyond. Don't mind. I think it was front page news and every single big paper around Europe LOC . Thought of like a terrorist attack and people were scared that throughout the city in Dolphin GPE there was more tax to be happening Investigators PRODUCT just after the bomb went off and the the players of the team were shell shocked the person who had masterminded the attack was actually sitting In the hotel Steak GPE and sweet potatoes. My name is Thomas Rogers PERSON . I'm the journalist who wrote the article. The get rich quick scheme that nearly killed a German NORP soccer team. Don't mind is a midsize city in the western part of Germany GPE and the state called North Australia LOC and it's a former industrial city that's kinda fun on hard times in the last few Decades DATE . It was severely bombed in the war. So the center of the city is quite stark. Some of the few high points includes it's soccer team. My name is Aiken ORG . I'm a reporter with Bloomberg News ORG and I'm a great fan of Boris Airport PERSON . Dorkman GPE fans are super loyal on all match days DATE the entire city is in black and yellow it's like a religion I think more than German NORP cities Soccer does play a Very large role in the identity of Dortmund GPE .
More than German NORP cities Soccer does play a Very large wall in the identity of Dortmund GPE . In October of 2000 DATE the BBB Became the first team to honestly get to actually go public. Salaries for soccer players in the Buenos League ORG have gone up very dramatically with such high prices they thought that by by going public they would be able to compete better with big teams like by unmunic. Unfortunately that didn't go too well. Don't bought too many expensive High wages and the club almost went bust in 2005 DATE but the price of their shares it has sometimes gone up Mostly gone down since they made that decision So on April 11 2017 DATE Team was staying in a hotel on the outskirts of Dortmund GPE . Match day is always special in Auckland GPE . Everyone is looking forward. The team always meets in the same hotel ahead of matches. They stayed in this hotel in order to have a kind of a neutral space before games so that they could concentrate be a sort of isolated from distractions things like Everyone was pretty optimistic that a chance to go really far maybe into the finals. I was in the office and getting ready for match day was gonna meet with a friend a fellow dortman supporter in a pub as always the fans are very excited about matches on that day DATE We're heading to play in the quarter DATE final against ASMO ORG . At signal Idona Stadium FAC which is Center of Dortmund ORG . Shortly before a 7 PM TIME the players of the team boarded their official team bus when the bus took off the parking lot of the hotel and turned on the street were three three CARDINAL detonations three CARDINAL bombs that exploded and hit the bus off three CARDINAL explosions occurred close to the Team ORG bus the B team bus had just left the hotel. The explosions destroyed two CARDINAL windows in the rear part of the bus People jump to the ground but the fellow dolphin fan I was supposed to watch with he called me and said turn on turn on the TV that was an attack of the dolphin bus and I thought he was like there was impossible Some of the players screamed at the To keep driving as fast as possible because they were worried that People might storm the bus. Contained metal pins and the one had pierced a seat headrest under Team ORG members the actual As they were just in parking the bus was actually eating steak and sweet potatoes at the hotel they just left Authorities ORG are attempting to verify a letter left at the scene claiming jihadis were behind the attack because there have been a series of attacks by Islamic NORP terrorists in Germany GPE and Europe LOC . There was widespread suspicion in the media that this was another Islamic NORP terror attack. Three CARDINAL letters were found at the site of the bombing that took credit for the attack on behalf of Islamic NORP State there were however reasons to to to doubt this particular narrative would actually be a surprise if Isis were actually Of this this attack. Possibly could be employed by other groups like the far right wing to join shift the blame. The letters had some strange qualities. They were written in a strange German NORP that used big sophisticated words but had basic grammar mistakes as if someone was native German NORP speaker but pretending to be foreign person federally investigators have detained one CARDINAL man suspected of links to Islamist NORP terrorism one CARDINAL of two CARDINAL suspects whose apartments were raided this morning TIME Shortly after the the bombing a man in Austria GPE named Rudolph PERSON who is a was a big BBB ORG fan he Notice that something strange was going on on the stock market related to the team shares the emailed the lawyers of BBB ORG who then
Just said something strange what's going on on the stock market related to the team shares Emailed the lawyers of BBB ORG Then forwarded that email on to investigators. The email stated that someone had bought 60 1000 CARDINAL BBB ORG put options wager that the value of the shares of the team would fall below a certain amount at a certain date Why would someone buy that ahead of a match and then Bombs go off. Something, something, something isn't right here. For the person to make money off of that, it require the stock to go down quite a bit, in a fairly short period of time, and it wouldn't just be The team losing match it would require something much bigger than that There was another big red flag about this purchase which is the fact that it had actually been made. Number one CARDINAL on the day of the volume but also from an IP address that had been traced to the actual hotel where the bombing had taken place When three CARDINAL explosions targeted the bus carrying the footballers on April the 11th DATE written notes left at the scene claimed the attack was the work of ISO ORG . The truth as is now alleged is remarkable. On April 21 DATE the police arrested a man in a Southern German NORP city called Tubingan I was on his way to work and his name was an unlikely suspect because he had no known connections to the Islamic NORP terror world he didn't seem Hey pharaoh extremist he didn't seem like a left wing extremist either he seemed to be a completely Unremarkable young man A 28 year DATE old German Russian NORP man named only a sergei W stayed in the same hotel as the players on the night before the bombing he specifically requested an Room overlooking the bushes where the explosive devices were hidden. The media dissected why he would do that. What was his past? He Been inspired by the 2015 DATE terror attack in Paris GPE and he noticed that in the aftermath of the attack the stocks of French NORP companies went down and he believed that if an attack took place that was directed at a specific company That the decrease in stock price for that company would be even more dramatic. It never occurred to anyone that someone would do that out of greed. A suspect bought three CARDINAL different arivatives on the Borsia Dortman NORP shares with all these derivatives he bet on falling shares. The suspect bought the majority of these financial products on the 11th of April DATE . Of the attack. If the plot had been completed successful and the stock had reached a value of oh inner gold Made up to โ‚ฌ570000 MONEY with the equivalent of about $608 thousand MONEY . Ultimately the plan Backfired the attacker Court ORG he would be extremely quiet he usually kept his hands clasp together one of the lawyers actually commented that he had never A defendant acts so calmly Dinner Gold ORG had served sometime in the German NORP military. From that information and from online research she was able to figure out how to assemble remote detonated bombs that would do What he hoped to do. There were a few days DATE of extremely emotional testimony Shooting the soccer players who describes doubting whether or not they could ever play another game again. It brought everything back up and it didn't quite help them to kinda process what was going on Throw it at all. He sat there Silent The big mystery that was swirling around the trial was the question of why May DATE have simply done it because he wanted to impress a woman. Rebecca is a young woman who has a very troubled home life. She ultimately sees her relationship with vinegar as an opportunity to leave that troubled home. Vinegar Gold PERSON is a Russian NORP immigrant to Germany GPE . He speaks with an accent.
In in jail in Germany GPE The threats of an asteroid hitting earth is very real. If it's big enough it's also very final These are very very infrequent events. The probability is not oh though. A blinding flash of light streaking across the sky. About 100 tons QUANTITY of space rock falls on earth every day. Most of it is so small. It burns up in our atmosphere. All lands unnoticed away from major populations. No human in the past 1000 years DATE is known to have been killed by a meteorite And according to Nasa ORG no large object is likely to strike the earth anytime in the next several 100 years DATE . However, Is certain. Haven't found them all. There are thousands CARDINAL out there We don't know where they are. There are a lot of asteroids in our solar system The number in the billions CARDINAL . All over the world are working toward detecting and deflecting the most catastrophic of natural disasters. The race is on to find as many of these objects as we can. Potentially dangerous on all. I mean, I think it's something worth investing in. Sorry existence at stake right Amy PERSON let's get this one out of the way it's probably the question you get asked the most but how scared should we be? Comments are a natural That's out there like a lot of other natural hazards. These are very very infrequent events. These collision events where Object ORG actually impacts the earth LOC . The most important thing that we need to know about asteroids is, you know, when the next impact is gonna happen and how bad it will be. What we know is that an object that's about say a kilometer across is capable causing very, very wide devastation across the planet. Really, truly global devastation. The object that wiped out the dinosaurs was somewhere in Five CARDINAL to 10 km QUANTITY across. So, even bigger than that. At a kilometer QUANTITY , it's still gonna be very bad and we'll have global effects. For objects that are capable of causing what I would call sort of regional damage kind of a large major metropolitan area a city and it's surrounding environments sort of around a hundredish meters it depends on the details of the composition and so for By the 1980 DATE 's Nasa ORG was cataloging near earth objects. In 1994 DATE Stargazers PRODUCT watched his comet shoemaker Levy PERSON nine hit Jupiter LOC . The resulting zone of chaos was estimated to be as large as the earth LOC . In the event became a turning point in the search for asteroids and comets in our solar system. In 1998 DATE Congress ORG task Nasa ORG with binding 90% PERCENT of asteroids and comets one km QUANTITY wide or larger. Soon after Hollywood GPE blockbusters armageddon and deep impact for tension and fear to the masses The great news is that the vast majority more than 90% PERCENT of all the really large one km near five CARDINAL objects have been found the challenge now is working down to the smaller sizes that are Causing a lot of damage but they're just harder to spot because they're fainter. They're small. Can you give us a sense of how many are out there in our solar system We know that there are a lot of asteroids in our solar system.
Can you give us a sense of how many are out there in our solar system We know that there are a lot of asteroids in our solar system. The number in the billions CARDINAL , most of them, however, are between Mars LOC and Jupiter LOC and what we call the main asteroid belt. This is a region of space where most of the Australians NORP in the inner part of our are solar system live and they stay there for many billions of years. There is another Somewhat PERSON close to the earth. And we call these near earth objects. We think that there are millions and millions of neuropathics that are out there in the total population. As of today DATE , we know of sort of around 2025 DATE , 1000 CARDINAL something like that When we first spot an object, we we really know very little about it. We just see something moving across the sky All you get is just sort of a handful of snapshots just enough to be able to tell that this isn't an asteroid that we've already seen before and then once we can calculate the distance to it we can now start to make predictions about it's true size is it large or is it small? So we have a lot of information that we have to get pretty quickly to really understand what's going on. Finding asteroids is just one piece of the puzzle. Planetary GPE scientists are extremely skilled in determining the orbits and speeds of asteroids based on relatively small amounts of data. Nasa ORG run simulations of the trajectories asteroids could take which is useful but time consuming A team of scientists in the Netherlands GPE have found a way that could buy us more time. Our methods is very quick. So you can very quickly get an assessment of whether or not your objects is dangerous or not. If you look at the classical way of determining the danger of an asteroids it may take you know days of computing time on very big machines To to determine this this hazardousness the current problem is that there's this too many asteroids out there to us and a huge amount of computational power on all of them So the neural network allows us to focus on what really could go and Mimics the way the human brain operates to find underlying relationships in a set of data by training the network in this way you you train it in recognizing those objects that are most likely to hit the planets. And once it strains you can apply this network to all the unknown asteroids. And then you can make a selection and say hey this is these are the ones which appear to be having orbits similar to the ones which we know are hitting the planets. It doesn't mean that they do but it does it only means that they look very similar to once We know they do. What else did you find? Should we be particularly concerned about anything? That we did find is that our neural network was able to go and identify a handful of asteroids which weren't considered potentially hazardous that when we went into the gradient time they came Quite close to her. Which we're not detected before or not considered being engaged before her meeting they are potentially dangerous it's very hard to send you away Kinda PERSON going forward in time and ask for it that's gonna hit earth because What the earth is really small And what space is really big and then you have to have very exact parameters to shoot an astro GPE that goes and hits exactly earth. And then Simon had the ingenious idea of not even trying to do that and just launching the asteroids from her surface Backwards in time. It's very hard to make a hit So you need a lot of calculations which all end up in nothing. And the idea was then, like, well, let's all do that. This is basically what Nasa ORG 's doing. Now, she's taking an asteroid, making multiple copies of them, shooting them all for it in time, calculating their or And then see what fraction sort of gets close to earth. They'll even hitting earth but getting close to earth. And that they call it a potential impactor. So you calculate the Charlotte GPE system forwards in time for let's say a 1000 years And then you launch asteroids from the surface as if they if you go forwards in time would fall on the surface you calculate them backwards due today DATE And then you get your orbital parameters of today DATE 's astro GPE to which you know will land on the planet. And those you can use as known infectors. Hey
And then you get your orbital parameters of today DATE 's astro GPE to which you know will land on the planet. And those you can use as known infectors. Where perhaps telescopes and and other imaging tools can't. Absolutely. Since the observations get more complex. Complex becomes more complex and at some point you can't solve your problems analytically anymore and then there's where the computer comes in. Now, we have this train here on network. We have a way of calculating in a fraction of a seconds QUANTITY . Whether not an estro, this potentially dangerous or not and therefore deserves more attention Or more time to spend on Really finding out if it is dangerous. When it comes to hunting asteroids time is critical. What we can do about a potentially hazardous object depends a great deal on what we know about it and how much time we have before the encounter We'd really like to find them on their decades DATE away. Because the more time you have, the more options you have. And the less energy it takes to to move an object decide. It also means we might not have to resort to launching a nuclear warhead as an asteroid. Until recently, pretty much are only choice. That's an option of Think about just nudging it off. It's path a little bit with you know a massive object. A spacecraft. Let's say it's kind of like bowling if you will. You know if you have A long time or a long stretch of of runway in the lane just a very small twist on the on the bowling ball we'll make a big change in where it ultimately ends Another option it would be something Take a very big big massive spacecraft and you park it next to the And you use the force of gravity as a towing rig. That takes longer though. And you need to Send a pretty massive spacecraft and obviously depends a lot on how big they are straightest Other options start to get more and more complicated They range from painting one side of the object white color and painting the other side dark and then letting the pressure of lights or preturb absorb it. In a departure from the lab and computer simulations Nasa ORG has real plans to rehearse kinetic impact deflection In 2021 DATE the agency will launch dart the double asteroid redirection test mission which will intercept a 160 CARDINAL m asteroid in 2022 DATE Better to practice now before we have to deal with an actual threat. In the meantime, discovering asteroids is our best bet. Scientists and amateur astronomers around the world make up an informal network that survey the heavens. But that may not be enough Nasa ORG wants more resources to map our solar system and better technology. We need to ramp up our network of sensors and also we need to just continue to strengthen our our network of international observers so that we can get follow up because we find these objects when they're dis All over the night sky. Once we get more observations, we get better data. We can make better predictions. It's the big impacts we have had in the last let's say 20 years DATE or maybe 30 years DATE 50 years Them. We haven't seen coming. So, the danger, the real danger I think comes from Europe Church ORG . We don't know about. And not from your church, we do know about. This particular natural disaster like a lot of natural disasters in my climate changes are the problem of the global comments. So the thing that we risk collectively is that it's sort of then becomes nobody's problem Nobody takes over it the asteroids are all over the sky they just truly cross boundaries and borders with the seconds notice I mean I think it's something worth investing in. Sorry existence at stake right
The pandemic is affected everyone in different ways. Some past the time by baking. Sourdough GPE bread do i need to say more Some chose to binge watch Netflix PERSON Or maybe you started a garden oasis in your backyard. Next, I'm gonna put my Susan PERSON . Millions CARDINAL of others. Posting stocks that will Boom PERSON . They wanted to uproot the financial industry. Here's a stock that can change your life. Up and I buy it and i just watch it until it stops going up and then i sell it. I have gained over three 1 million dollars MONEY . I want some free money. You can overstate the online communities or social medias influence on financial markets. Inexperienced investors who discuss their plans on social media platform Reddit have shaken up the stock market in a big way. Video game retailing The revolutionary Anyone can play it. Trading. Nowadays you don't have to look a specific way you don't have to wear a specific clothes you don't have to be doing it from a trading floor on Wall St and like a high-rise building in in downtown Manhattan GPE the narrative of what's driving the market is no longer being held in secret offices in New York GPE in Boston Privilege ORG people talking to other privilege people. It's right out in the open. It's on Twitter PRODUCT . It's unread it. From brokerage apps to discord channels and subreddits to TikTok Finfluencers ORG . One CARDINAL of the last holdouts in the world of disruption. Finance ORG is next in line. Investing should be as you pick with us as shopping online That's Vlad Tenev FAC the CEO of Robin Hood PERSON the online brokerage app talking about how he wants his app to disrupt the world of stock trading like Amazon ORG disrupted the world of home shopping. And I think that speaks to exactly the mission that a platform might As which is to democratize investing. Robin Hood PERSON was started in 2013 DATE by Vlad tenniv and by jubat in where else silicon Valley LOC as an alternative to the big brokerages but with one CARDINAL big difference Building the social network around finances for people they realize that there was a gap in the market and that free trading could become something that they could bring to the markets they could disrupt the industry Well, no fe trading is industry standard today DATE . It was unheard of when it was first ORDINAL to introduced. Brokerage industry was really innovative when they came on the scene 10 15 years ago DATE but they kinda stopped innovating where you haven't seen those commissions come down beyond five CARDINAL or 6 or 7 dollars. Robin Hood PERSON think that by offering oh commission that they're gonna push people onto this platform and on top of note trading the customers Robin Hood PERSON was recording have been long overlooked in the world of it. Finance. So the typical customer of a trial.
And on top of no fee trading the customers robin hood PERSON was recording had been long overlooked in the world of fine so the typical customer of a Charles Schwab PERSON for example is putting a lot more money in that brokerage account than the typical customer at Robin Hood PERSON even today DATE with all of its popularity the median account size About $240 MONEY . In the swaps Of the world Look down their nose it does kind of accounts I don't want a $ 1000 MONEY account they're just a headache I want $100 thousand account That's different than every other single brokerage platform is how easy it is to use The design of the robin hood app really has in mind a user who might be coming out this absolutely cold The fonts are very well sized. The shapes, the colors, all of that is something that the founders of Robin Hood PERSON paid really close attention to. And by creating an interface that catered to a newer investor they were able to gather a pretty healthy group of customer And by 2019 DATE , they had about 10 1 million QUANTITY customers. Those 10 1 million QUANTITY customers were a huge success story for Robin Hood PERSON but no one could have predicted its explosion after the arrival of COVID-19. Of the non essential workforce must stay home. Was the growth of Robin Hood PERSON users Turbo charged. And now by many accounts they have more than 20 1 million customers which is pretty extraordinary. So the next step for them is to figure out how to monetize those users and how even with their small account sizes to get them to grow with the company and as it releases more products Come along with them. Robin Hood PERSON would become one of the COVID economies breakout successes Robert Hood PERSON traders as their called became the short hand explanation for the frenzy of often speculative retail investing after the pandemic lockdown Kids wake up in the morning they go on Robinhood ORG they're you know in the shower they check Robin Hood PERSON Kids are learning how to stock market works at 18 CARDINAL while they're at school, you know, checking their phones and between classes because notifications pop up telling them what their stocks are doing that day DATE . With these new tools millennials and gen Z are investing in the market in ways their parents could have never even dreamed of. Sort of key when we talk about the divide between older and younger generations is that the younger generation was exposed to so much more And tools at their disposal to do what they want in the market. The older generations, you never had the technology or the cost structure that you could play the markets like you can today. So, you were stuck with giving your money to a professional investor of paying them a fee. To do it. Experience more so than anything else. You know if you could possibly shave 10 20 years DATE off your working life versus adding 5 years DATE No.
You know if you could possibly shave 10 20 years DATE off your work in life versus adding 5 years DATE I don't think you can fault people for that. But Robin Hood PERSON is only part of the puzzle sure you can trade on it but without research information and data you're just blindly throwing darts at different stocks and hoping to strike it rich. Wall St forever his always run on what we now called narratives for needs you know people telling rumors to each other a bit around for 100 years DATE . Street information is its own currency Either you had it or you did it and the people who had it had a huge advantage. It would be one person telling another person over the phone Fact when i broke into this business in the 80s a lot of people used to complain that they weren't on the call list to get those ideas Social media changed all of that. Fast forward to 2021 DATE , that's being done on the internet now and that's being done on discord and Twitter PERSON and Stock Twitch in Reddit and the impact is very similar but orders and orders is back to two CARDINAL larger. Also played a bigger and kind of more important role in how people find investing ideas And on these platforms. Those ideas spread on TikTok ORG . That TikTok ORG . People aren't just going to at for sea shanty videos. The personal finance hashtag on TikTok ORG is garnered three CARDINAL . 5 billion CARDINAL views from its one 1 billion MONEY monthly DATE active users by comparison videos found under the cooking and health tips# have two. Six and two. 1 billion CARDINAL views respectively Trajectory of Robin Hood PERSON and TikTok ORG were What happened in the stock market this week DATE ? So, the word of the week is expectations Absolutely essential that you guys understand the risks of shoring. Kyla Scanlon ORG are two CARDINAL of those financial influencer TikTokers ORG . Also known as Finfluencers ORG . A lot of them are younger investors who are looking to home their skills taken right up Kywin GPE Kayla are two CARDINAL of the more let's say Tiktok PERSON influencers. Cluster. Reading since high school and it was a really interesting way for me to fill out my decision making frameworks and to think about thinking and I think that's some more that we can have people thinking about finance the better that we're going to progresses as a society I think it's a huge gap that are educational system If you're gonna buy an option for a stock you can just gonna go up it's a call Can I still buy it at Suppress Kind of women just like attack that video and we're like Or like I could sit and listen to you all day and I was like the this is what I was looking for. But TikTok ORG 's algorithm does not reward common measured videos about responsible investing. It rewards this. Watch this video for 30 seconds TIME and you'll be rich for the rest of your I try not to say the A word the ALGO word Take talk lessons to it. The algorithm does impact how you feel. You know, you do notice which videos do better versus How do you catch some of the tension in less than 60 seconds TIME and how do you make it something that they're like I need this in my life nearly impossible to do that in 60 seconds TIME but the people who put it are the people that you're gonna watch and give them stick around And where people are sticking around read it and it's nearly countless subred it's about finance. And by far the biggest one of those is Wall St bets. There's a lot of social media platforms out there.
Bread it's about finance And by far the biggest one of those is Wall St bets there's a lot of social media platforms out there but Reddit is like the social media platform for finance places like Wall St Beds PERSON is where it all goes down started in January 2012 DATE it wasn't Before Wall St bets adopted a 410 CARDINAL like etiquette leading to their tagline like 410 CARDINAL found a bloomberg PERSON terminal. We had all these unexplained stockings and we would be grasping for a widestock XYZ jump ORG 20% PERCENT a day and you would look at Wall St Bats and you would see people there talking about buying options in that stock and Sort PERSON of. Wow we have to start paying attention to this. Some people on the platform really spend tons of time and others are just looking for entertainment and to have a little bit of fun, effectively gambling or looking for an outlet trying to make a little bit of Then on top of all of that there were stimulus checks now clearly this money is going to people who need to use that to eat to live but there's a lot of people who use this money To invest in the stock market. And it's not just stock tips people quote unquote yolo their entire life savings are stimulus checks on a single stock They post what is called gain and lost porn screen grabbing staggering hits and misses on stocks for the entire community to see About to lose. I want some of the people on Wall St Pets are novice investors the community contains multitudes in one CARDINAL respect what it did show us among these network groups is they are very sophisticated they're not a bunch of ignorant people talking to other ignorant people and this is where Pieces of the puzzle all come together to reach havoc on Wall St for a solid week in early 2021 DATE . Pretty clear that the combination of more people having retail brokerage accounts and treating apps and more people being stuck at home looking for some kind of entertainment and some kind of community online came together in this very singular way. What came together is GameStop Let's go back to the beginnings of what happened with GameStop cup with years ago Words like write it in stock with a lot of people were talking about GameStop is being attractive value. Example of that. Opportunities in the market today DATE . Really, I don't understand how you could disagree with that. It's the same time that this crowd was talking it up. The hedge fund institutional crowd didn't like this stock at all and it had the largest short interest of any stock in the New York Stock Exchange ORG going into late 2020 DATE . Sally PERSON is a bet that a stock price will fall and it's a fairly simple concept. An investor borrows a stock and then sells it the investor is betting on buying the stock back later for a lower price before returning it to the original owner pocketing the price difference What a short seller would tell you is that they almost act as a policeman in financial markets or they're at least looking for companies that aren't what they say they are and that can range anywhere from an outright fraud that some short sellers try to expose to just a company that's not worth as much as Think it is. Is if the stock price rises the short seller has to come up with the money to buy the stock back and the more prizes the more costs and that's what's called the short squeeze and the hedge fund Melvin PERSON capital was on the wrong end of that squeeze Just from being caught in the short squeeze of the stock The disruption comes in. One CARDINAL of the most wild stories you're ever going to see GameStop shares absolutely going nuts in less than a year DATE the company's stock has jumped from less than $three MONEY a share to almost $350 Cheers MONEY . Rory.
The company stock has jumped from less than $three MONEY a share to almost $350 MONEY . Cheers everybody. He has turned $50 thousand MONEY or so investment into some 14 1 million dollars QUANTITY . Investors all over social media use the free trading app robinhood to wreak havoc on Wall St Tick tock and discord to tell one another to keep buying and quote whole the line and not sell game stop people are getting cheerleaded for jumping in buying at the highs they're saying keep going and it was working too Thursday DATE morning TIME the trading app Robin Hood PERSON sent out this tweet in light of Market volatility. People were really angry. Retail investors are being allowed to buy shares of the stock but what we learned is that when people organize Mine they have the ability to disrupt the market It was a big sign that ivory walls of institution artist powerful is maybe the institution slapped them to be I don't know something about game stuff was the best use of billions of dollars MONEY but I think that as a signal to society it was pretty interesting The game stop saw was so impactful that both Vlad Tenev FAC and Rory Kitty PERSON were called into testify before congress ORG to clarify each of their roles in the saga Is that they're interested in how retail brokerages make money and whether they're keeping the best interest of their customers in mind but it's pretty fuzzy as far as what they would actually do as a result. Friends around GameStop eventually subsided it didn't take long for retail investors to find other areas to invest their money take a look at Bitcoin going bananas over the weekend DATE big one forms of brand new all time high it was after game stop started to drop that we saw Bit Really go up to over 60 1000. That doesn't rally have to run it's compelling to say that money shifted from one venue to the other. Correlation doesn't equal causation. There's a chart out there showing an inverse correlation on meme stocks going down and cryptocurrencies going up. Definitely an aspect where people are making money on stocks and then moving, you know, they're agnostic. They're not a hedge funds. They can invest wherever the hell they want. It's a classic sort of They're going to wherever the winners are and they're willing to jump on and So whether it's meme stocks like GameStop meme coins like Dogecoin PERSON or entirely new ways to invest in art like NFTs the new kind of retail investor is making its presence known over the next 10 DATE maybe 15 years DATE you're going to continue to see whether by choice or by force that baton go from older generations to younger generations I don't think any single app is is going to be the thing that disrupts I think people are the disruptors Ideas about what to invest in has become increasingly entwined with social media and as social media companies govern more and more of our lives the fact that now they're tied in more intimately to people's wallets is something that we might wanna understand Usually what disruption I think means is technology comes in whether it's blogs to the newspapers or online retailing to brick and mortar they come in and they're in the same business but they just do it in such a gigantic car savings that it causes everybody to Well, that's the risk that happens here is that it's so much cheaper to just manage your own
Well that's the risk that happens here is that it's so much cheaper to just manage your own money we're not there yet but cost and conveniences are moving in that direction so I'd say Wall St you haven't been disrupted yet but you In the coming years DATE and that the final chapter on this story hasn't been written. Meet Bloomberg PERSON 's own David Nicholson PERSON . Now his happy place is out in the field On the open road But like the rest of the world lately he's been working from home a lot more than he's used to. COVID-19 has prompted a massive urban exodus as professionals of every ilk yearn for more space to live and work. As a result, rural areas have exploded and their poise to experience a resurgence as more and more families pack up and leave the big city to try out life in the burbs. But there's one CARDINAL problem with that Not all internet speeds are created equal Anyone who might need to upload or download large files for a living may not wanna pack up and move to that cabin in the woods just yet. Now David's house isn't a cabin but it is in the woods and inexplicably his internet is workable. My internet is okay. I pay a lot for it. It's around $140 MONEY a month. The download speed's great The upload speed is terrible which is really bad for my work cuz I have to upload these massive files but I'm definitely one of the more lucky ones in this community. Just a few miles QUANTITY down the road, my buddy has awful internet. Usually under two CARDINAL down Under point due up so it's it's often unusable. It'll drop down to about. CARDINAL Two CARDINAL . Three. Do have internet at my house without having to go outside the More. Acquiring internet. It's it's really frustrating. We're literally Miles PERSON a few miles QUANTITY away from downtown. Anna just cuts off. A problem and the solutions are not there yet because getting high speed internet and rural areas on mass is something our providers may simply not be ready for If your internet service doesn't have fast download and upload speeds then you don't have high speed harmony you have. Americans NORP on average pay about $70 MONEY a month for internet at home. But in rural areas it could cost a lot more for a lot less service. So the pricing for a fixed wireless provider here can be something between 80 and $150 QUANTITY For about 25 CARDINAL megabits per second. However, gigabit service which is a 1000 megabytes QUANTITY per second ORDINAL and symmetrical is running at about 119 a month DATE or 130 CARDINAL a month. That's John Paul PERSON he co-owns spiral fiber an internet service provider here in Nevada County GPE California GPE and for the past 10 years DATE he's been trying to bring an affordable fiber optic network to town It all started when you apply to be part of the pilot program for google ORG 's fiber service. Civic boosters have been going to extreme chanting. End marching. Hey These days DATE is crucial to be in the world to be a part of the world and to be connected to your community. Google ultimately went with Kansas City GPE Missouri GPE which left Paul PERSON on a mission to get together.
Is crucial to be in the world to be a part of the world and to be connected to your community. Ultimately went with Kansas City GPE Missouri GPE which left Paul PERSON on a mission to get funding to layout fiber optic networks for gigabit service Over the next several years DATE he would attend conferences and pitch venture capitalists and apply for grants to make his vision come to life One of the biggest roadblocks to building infrastructure for the internet here in the United States GPE are the existing large providers. They have their landscaped out they would prefer that nobody come in and compete against them in 20 CARDINAL We applied for a grant. We went down and met with the commissioners at the California Public Utilities Commission ORG . It was arduous process to get funded. But we finally did against all odds. We got a 16 1 million dollars MONEY And then we went out to seek venture capital Then in March of 2020 DATE the pandemic hit the world Everybody got locked down and everybody came home and everybody started using the internet and I remember seeing on one of the local fixed wireless providers websites they've said hey we know you're all staying home but please don't use too much video and please don't use too much band with an i thought that And work. The US GPE connectivity gap is far greater compared to countries that are considered its peers economically. Some developing nations actually have better internet than rural America GPE . Like in Kenya GPE , which has a state-of-the-art fiber optic network fed in from their coastline. The American NORP connectivity gap does largely affect rural areas that are either outside of service coverage or simply prohibitively expensive. This is Rebecca she earned her family moved to Nevada County GPE just a couple miles QUANTITY down the road from David. They took for granted that high speed internet would just exist in the area and it's not something they even bothered to check on before buying their house. Turns out all they got was dial up. We wanted to move where we have a little more space, room for the kids to run around, you know, just be out in the mountains a little bit more. Having come from a bigger city area where WiFi PERSON is pretty readily available. We had it really considered In our purchasing of the house whether that would be an option or not. When school started and now that we are remote learning with our children and we're doing everything from home. We didn't have the option to do that at our house so every day when School ORG would start we'd have to pack the kids up and we'd go to my in law home they have a little cabinet in this area that does have WiFi PERSON already Situation ORG is the norm in rural America GPE . According to data from the federal communications commission ORG , just four% of urban Americans NORP lack access to broadband internet. That's compared to almost 40% PERCENT of people who live in Areas GPE . Device in terms of who had that access. In addition to that geographic difference, low income African American NORP students, Latino PERSON students, and first ORDINAL generation college students were more likely than others to have only one device at home that shared among multiple siblings and or lack access to that actual connection. For most American NORP towns there's also a lack of competition forcing internet prices up enlarge providers like AT and T in Comcast aren't incentivized to expand service to these rural communities. Simple, easy, awesome. So, in our area, we have a small imprint of Comcast but they're not gonna go out to the more rural areas. It's just not cost effective for them to do it as a large company. In order to weigh fiber cable, you're actually physically digging trenches into the ground and for internet service providers, they're Primarily focused on maximizing their profits and so the fewer customers you have you know in any square mile and the more fiber you have to lay that's just kind of harder to pencil out from a purely economic standpoint AT and T release a statement on the matter expressing the need and desire for government assistance to fund fiber optic expansion To areas deemed unprofitable Comcast ORG released a similar statement encouraging more public private collaboration on this effort. Federal agencies do offer grants to help communities build broadband networks but many have argued that there's not enough flexibility on how to use these funds. The COVID-19 relief package passed by congress ORG in March DATE and signed by President Donald Trump PERSON awarded $ 43 MONEY . 3 million to 51 CARDINAL projects on the east coast LOC alone. Put it all
It's passed by congress ORG in March DATE and signed by President Donald Trump PERSON awarded $ 43 MONEY . 3 million to 51 CARDINAL projects on the east coast LOC alone. But it also stipulated that these projects needed to be up and running by December 30 DATE For contractors who plan projects months DATE and years DATE in advance it's a scramble to rearrange their schedules to meet that deadline. So what we've been asking the federal government to to consider is at least have as long as the projects are getting started knowing the projects are being put into place to expand both remote learning working from home and and an opportunities like that that are truly driven from COVID. We're moving as fast as we can regardless but hopefully they'll give us some more time. Talking to john Paul PERSON it's clear that he believes broadband is something that can transform a community and should be considered a public good What are the first ORDINAL communities to come on in the United States GPE with full on gigabit service was Chattanooga LANGUAGE , Tennessee GPE . Now, there are bigger city but there are city that was econ In a downturn In the last 15 years DATE the city of Chattanooga NORP has turned around in an amazing way. It's a nexus for young people to move to. It's a place where technology happens. It's not just about logging on to Zoom PERSON . You know that to connect with your colleagues who might be in New York City GPE . Also your ability as a small business you know operating in the town of Nevada City GPE or wherever it may be to you know quickly upload your Roll documents or something onto the cloud or to quickly you know swipe a customer's credit card. There's just some really basic business functions in mechanics that I think people in big cities really take for granted and that are just gonna be a much bigger challenge for small business owners in rural areas Hey Thank you. Historically the marginalized people you call them as untouchable it's ah there have been kept away from the center of the knowledge once you are born into a cast it is very Call for you to grow beyond that you are stuck in that identity. Yeah education is the best We are liberating them so that's how I chose to work in education sector. The kind of education that we are giving to the marginalized people is going to change not just the fate of these communities in It is going to be the source of inspiration Oh been a source of hope All the marginalized in this country. Greatest flight in India GPE is the system of cast. For generations of Indians NORP the social code known as the car system has defined how people earn a living and whom they marry. Although outlawed seven decades ago DATE Remain ORG a significant factor in deciding everything from family ties and cultural traditions to educational and economic opportunities. Darling people who are on the lowest run of the car system constitute almost one fifth CARDINAL of India GPE 's population of one. MONEY 3 billion. Not able to afford the high tuition
The car system. Constitute almost one fifth CARDINAL of India GPE 's population of one. MONEY 3 billion. Not able to afford the high tuition of private schools many of us to attend government funded institutions which in the past have suffered from poor infrastructure lower education standards and high student to teacher ratios But Doctor Praveen Kumar PERSON is trying to change that. Currently working as you know ahead of the social welfare residential schools. So, totally above 400 CARDINAL schools I managed. They're all residential schools. For the students who are historically marginalized but talented Than poor. 60% PERCENT of girls and then 40% PERCENT a boy because girls are more marginalized among the marginalized their voices are always suppress My approach to improve the conditions in the schools has been put your eyes and ears on the ground always talk to the parents To the teachers, talk to the students, you know, Stay the schools and then understand their problems they challenges both in classrooms and then the corridors and the domes then go to the dining halls and see what kind of food they are eating and then go to their homes and then what kind of food What kind of challenges parents have What are the important changes that I brought in after I took over was to The transformation of Motherton LOC to English LANGUAGE medium because english LANGUAGE medium as I said English LANGUAGE is the language of emancipation A language of that connects you to the whole body of knowledge in the world. So we had to train a lot of teachers Hey portal Identity is extremely important There is there is a scientific evidence to prove that you know you are since I've identity is extremely crucial to your growth as a successful Human being in your life. If you are accepting identity which is very humiliating which reminds you of very painful past I think that identity will not help you to grow Not saying that you should forget your past. I'm not saying that but that should not be ah the bubble in which you must live always. Hey portal Asueros is an alternative identity. S stands for state Stands for welfare arrow Blue and then arrow is Suero GPE . So the idea is your dreams have to be sky bomb So that is what we are trying to achieve by changing the identity so like you know we say I'm a swearer And I aim to be a doctor. I am a surro. I am to the top notch engineer. I am a surro. I want to be a top bureaucrat of this country. I must where I want to be a very good actor or you know Musician NORP in the store in a while. So, these are the positive images that are associated with Ireland GPE . Just to give an example to you. See in 2012 DATE Are you not institution we used to produce about six CARDINAL doctors per year. But because of our you know this self liberating ideology of serroism. We have this year DATE we have produced about 189 CARDINAL doctor This is phenomenal for any of the you know how difficult it is to get into a medical colleges in this country So, but today DATE because of this ideology, the students have been able to achieve this you know, heap. Pujita PERSON is has been a form laborator My parents, the girls are agriculture libraries and then this
Pujita is has been a form laborator Parents PERSON , the girls are agriculture laboratories and then this girl used to sell vegetables but thanks to the residential education institutions. She came to go with the D campus and then she toiled very hard for 1 year DATE despite you know many problems. And today DATE I'm so happy to share with you that you know she is she is joined one of the prestigious medical colleges in the state of Telangana GPE who is smiling medical college and then future when she hopes to be a gynecologist So, this is the journey. Our children are hoping for. Similarly the mountain is text version. I mount every expression we were we are very fortunate enough to please the youngest ever female in the history of One CARDINAL on the peak of Monterest PRODUCT . How did this happen it's all because of an idea that helps you to liberate yourself. Lot of extra curricular activities and most of them got institutional Also, for example, music. Similarly the games we have so many is coaching academy her boxing academy we have a handball academy so we have you know cupboard Indian NORP sport. If we have goal, if we have entered this goal, golf is generally played by so called rich people but today DATE , you can poorest of the poor people also are being trained in golf in our schools. So intention has been to give all 360ยฐ you know a type of opportunities to the students so that you know wherever is interested in whatever activity they can go and then do it. Break the barriers Break PERSON the fence at least mentally. Because support people have been programmed to be Program to be Subjugate. Program to be On the margins always To feel inferior. We wanted to change on that there are certain games which are exclusive to rich people There are certain languages which are exclusive to middle class and upper middle class in this country To put it in one word The soul aim of reducing all these To break the Stereotypes PERSON which are recklessly built on these people The stereotypes doctor Kumar PERSON knows all too well Born a dalet his grandparents were laborous and access to the village well was restricted. Doctor Kuma credits his parents belief in the power of education with helping him realize his aspirations. He went on to join the Indian NORP police service attended Harvard University ORG and then began pursuing educational reforms back home. I attribute whatever I am today it's to my mother primarily they educated me the village although there were no good schools so then I stayed in a social welfare hostel Hostels which are managed by government ah for the poorest of the portrait. I passed with you know reasonably good grades than I went to university and then I faced ah worst form of Commission in the university is like there were you know in those days I'm talking about so the bathrooms and the you know toilets were Exclusive element for Shelka Sanchez PERSON . We used to fight this convention on one hand and then again you know try to excel in academics So that's how I came to education because I deeply believe that Education ORG is the only important weapon that can really you know place the poorest of the poor people From from a very victimhood orbit to prosperous harbit. Think in future Going to be a game changer for the marginalized this country
If you look at a thermal image of a city and then compare that to a map of vegetation you'll find that weather's greenery the temperature is lower. That's because things like asphalt concrete and shingled roofs absorb more heat from the sun than trees. This is the urban heat island effect and it accounts for higher temperatures in cities often by several degrees QUANTITY compared with their surroundings It's becoming a huge risk to human health as growing up in populations exacerbate the heating effects of climate change. Heat waves kill more people than any other extreme weather event more than tornadoes hurricanes and even floods. That's why urban heat island mitigation strategies are being studied in Singapore GPE by a group of researchers. The government back project called Cooling Singapore PRODUCT is now in the process of combining everything they've learned to create a digital tool that can help cities all over the world Starting with Singapore GPE In Singapore GPE close to the equator temperatures regularly rise above 32 CARDINAL ยฐC or 90 CARDINAL ยฐF And the city structures only make it worse. And that is also the keys for Singapore GPE which is basically a concrete jungle, more urbanized, more developed city. And even in Singapore GPE what you have is a situation whereby there's a temperature difference of 7 CARDINAL ยฐC between the more urban eyes and the more rural areas The government has taken drastic steps to keep temperatures down. This is Gardens by the Bay an award winning park An inside this greenhouse is a pleasant 24 CARDINAL ยฐ. That's because the dome along with two dozen CARDINAL nearby towers full of thousands CARDINAL of people is chilled by what's probably the world's largest underground district cooling system. It uses a large central plant that cause water and then pipes it into banks residential towers and exhibition center shopping malls and the cities iconic marina bay sounds hotel and casino complex So one of the biggest perks of using this system for the buildings is that they can save 40% PERCENT In terms of electricity usage Compare to your traditional air conditioners. I'm with Singapore GPE relying on natural gas for most of its power. This new system means emission savings equivalent to removing 10 1000 QUANTITY cargo Stay as they are more than a third CARDINAL of the world's electricity could end up being used to call buildings and vehicles by 2050 DATE . As the world gets hotter gets warmer there is a greater need for air conditioning and as well as refrigerators for instance and the more people are buying these household appliances the more energy usage they they use and they release heat more and Climate change. It's a vicious circle And so since 2017 DATE researchers are calling Singapore GPE have been identifying design solutions that reduce our need for so much cool air in the first ORDINAL place. One CARDINAL thing many cities have in common and as the importance of education That's it very important measure Mitigate the heat.
One CARDINAL thing many cities have in common and as the importance of education that's a very important measure to mitigate heat because of the shading effect of course and deep psychological effects of the vegetation and also Of the possible Operative ORG . Effect of the vegetation. Can be of course on the ground floor Form of trees and troughs and you can walk under them. This is the so called canopy layer that the vegetation forms above us. But vegetation can also go up to facades of buildings. And you can go to the roof of the buildings. Luckily Singapore GPE has been striving for the garden city feel for quite some time. It was a vision initially introduced by them prime minister Lee Quan Yu PERSON in 1967 DATE to make life more pleasant for people and today Singapore GPE is one CARDINAL of the world's greenest cities in terms of urban vegetation. Campus Admiralty PERSON the community center that contains health facilities and social spaces now provides more green space than the plot of land it was originally built on It's topped by a roofscape of staggered terraces covered in local plants which functions as a community park. Under village green in the center that contains farm plots for residents to tend to. Park royal on pickering was designed as a hotel in a garden that doubled the green growing potential of its site. There's now 15 1000 CARDINAL m of sky gardens reflecting pools, waterfalls, planter terraces, and green walls. And the government has big plans as well. Singapore GPE actually has a plan to plan one 1 million QUANTITY trees and add more green spaces over the next 10 years DATE . It is actually a mix of one CARDINAL thing to reduce the urban heat island effect. But on the other hand is also to get the people to be more connected to nature. But it's not enough The city state has still been warming twice as quickly as the world average over the past six decades DATE . That's why cooling Singapore GPE has developed a catalogue of other potential heat mitigation measures. When you try to mitigate your heat and effect in a city or in any building in a village as well. The first ORDINAL place to start is by shading The windows you have to keep Areas clear so that the wind can move through it water of a certain depth can act as a very good thermal buffer If you have to construct heavy buildings such as high rises at least you can make the surface the facade Less heavy and you can protect it from direct sun penetration you have to make sure that no combustion engines will be in the city in the middle and the medium to long term range so ideally the electricity production is outside of And you bring just a clean City into the city you cannot at least minimize the use of energy in the city and you can start to slowly convert the roofs the facades of the city into Areas for renewable energy In Singapore GPE unfortunately this is a limited option but in the long run it could produce up to 2025 percent PERCENT of the energy of the electricity needed in Singapore GPE if all the roofs and the areas in the buildings on the buildings on the facades would be used to do that With so many different ideas cooling Singapore GPE is also designing a virtual model of the city to test them out it's called a digital urban climate twin or duct that will calculate how each element of the city's design will impact the urban heat island effect That means we model not only the geometry of the buildings digitally but also the model to transportation The insulation Temperature, the radiation coming from the sun. The weather, the local weather, the local climate, the even very very microclimate of the city. Water. Movement of people
Weather, the local weather, the local climate, the even very very microclimate of the city. Water. Movement of people in the city We can invent scenarios. We can design scenarios, test them before we actually built them and if they test very well and we are sure that they will function, then, we can start to build them Put them into reality. Singapore GPE will be using this new tool to figure out which actions it should take next. And the model can be applied to any city whether it needs to keep heat out or keep heat in which will ultimately save energy slow climate change and improve our quality of life. So, this is something that Singapore GPE will be able to export. Maybe even together With its city development systems that it already has Singapore GPE is one CARDINAL of the very few cities in the world that really This scientific approach with a very well established redesign and design approach through its agencies and the combination of its agencies. It has achieved a lot in the past If it keeps Following the scientific path and the combination Other In the city already we think that it will be a very comfortable Very livable city and the future even more than today. Times are tough. Jobs are scarce. It's risky to be outside and around others. Seems like there's very few ways to make extra money during a pandemic. So I guess I'll just hunker down and binge social media until this all blows over. Wait How do these people make money? Streamers, YouTubers ORG , Twitch NORP stars, how do they make money? Is it a lot? Is it a lot of work I know i gotta ask somebody in the biz and i got just the guy Austin John PERSON plays. This is your full-time job now, right? As of November of last year DATE , yes. This was always just kinda like a side thing. Like, any money that I made from My videos and whatever else I never touched that cuz I didn't really think of that as being like real money and then it started coming in more and more and then it would like I hit my first day that I broke a grand and I was like This is actually gonna be money How did the youtube channel come to be when the game Pokemon sun ORG and moon came out for the threeDS there was like things that I learned about the game and then I I wanted to just share that information with people and at the time I didn't have any way to capture a screen or anything so I found like generic footage and I kinda put it Together with so much editing and that video got six CARDINAL views. And then 2 days later DATE I made another one and that one got 12 CARDINAL views and then I just started pumping out more and more content and people were like, this guy knows what he's talking about. It really just started building on top of itself and then it was like My channel really focuses on tips and tricks so I A straight 18 hours TIME and I'll finish the game or get to about the 40 hour TIME mark and then I'll make my first
This is on tips and tricks so I play a straight 18 hours TIME and I'll finish the game or get to about the 40 hour TIME mark And then I'll make my first ORDINAL video. While I'm going through, I've a giant notepad and just scribbles everywhere and I make these notes of like the things that stumped me. So, I know the things that may stump other people. What do you need to think about if you're building your YouTube ORG channel? One CARDINAL , you need to do something that your passionate about. Not that you like, not that you think you're gonna make money on something you're passionate about. There's other thing is something that other people are passionate about. It holds a special place to them. And third ORDINAL is it needs to be something that people are gonna seek out information on. In order to enter into the marketplace you either need to be better than everyone else. You either need to be faster than everyone else or you need to be more accessible than everyone else. And you can't be more accessible cuz it's already on the platform granted if you understand how the algorithm works which is very similar to Google Analytics then yeah you can have a little bit of a head start but if you're not doing it faster and if you're not doing Better ORG than everyone else than why we shouldn't wanna watch our channel So my income as a YouTuber ORG kinda breaks down to three CARDINAL different ways. One CARDINAL , which is the bulk of it, which is add revenue. Whenever you go and you watch a video and then there's an ad and you wait 5 seconds TIME and you hit the bottom right corner and then you go on to the next video or nonscapable ad or The video starts immediately get the little banner at the bottom or If you scroll down from the video the first thing that shows there is an ad those are the four CARDINAL different types of ads that can appear on every single YouTube ORG video All of them pay a certain amount. It varies on lots of things like the country The time of year where you are in the quarter DATE if there's anything going on with A reduction in ad revenue like great example COVID-19 companies weren't as spending as much on advertising so because of that CPM ORG went down CPM ORG stands for a click per 1000 using the Roman numeral for 1000 And that means that for everyone 1000 CARDINAL views you get a certain amount of money now on low ads when I first started off my CPM ORG was Sense so every 1000 views I made ยข30 but then once I signed with an MCN ORG and I started making more quality content and more engaging content some of my better videos and certain times of the year I can see CPM ORG 's as high as 12 to 14 dollars MONEY And there's a big fluctuation between you know if I post a video No ads being spent like January DATE and February DATE that's original lot of your favorite YouTubers ORG and also TV shows don't post new videos in that time of year DATE cuz at rates are down why are they gonna make content You're recording in your bulking up for when ad revenue is higher. The second ORDINAL way that a YouTuber ORG makes income is Crowdfunding LOC , things like that. When I first started off Patreon was really the only option but then they started rolling out supporters and members for YouTube ORG channels. So, whenever I have a live stream, you can click a button and then you could become a member and then you get special icons next to your name. I believe they're called badges or on any video. Hit the join button and that helps support the channel and then the third ORDINAL aspect to that would be merch. And for me, my merch has been somewhat basic. In fact, I'm wearing one of my T-shirts from last year DATE right now. You have to endure the times that your first ORDINAL video gets six CARDINAL views. That you posted on Reddit. And they say shut up and then An automod bands you. You have to go through that because until you go through that You discover why you're doing it. You're not doing it for other people. You're doing it for yourself. If you're not loving what you do Then it's not worth it So make a channel about something that I'm passionate about Oh sweet. I guess I can make the channel about that
So I can make the channel about that. Now How do I grow an audience How do I get popular? It's all about diversification and you have to have a massive Twitter PRODUCT following. You have to have a massive Instagram ORG following. You have to have a massive YouTube ORG following of course you have to be on Twitter PERSON which is the key platform book. Basically, anyway, you can get in front of your audience. You can engage with your audience. It is going to drive those clicks which ultimately drives the advertiser revenue that you get back from all of these platforms. Playing video games and talking in a funny manner over them. They're not just people who are good at games. They're actually people who are good at online, engagement, online at entertainment first ORDINAL and foremost. Very talented at the game. The best player in the game is generally going to draw a crowd cuz people like watching people who are very good. On the other hand, there either very, very good or funny. Charismatic whatever it is on that side. Oh no. You know becomes more of a show where they talk about other things outside of the gaming world and gaming becomes really just a backdrop and an excuse to engage without audience. Ronald McDonald PERSON looks straight to VHS ORG movies. Remember those? I'm chatty I would kind of you know when boring things were happening the game I would ramble on about you know movies I'd watched or book side read on you know or conversations I'd had and stuff like that so I think being personable was a big part of that. It's not just getting on and playing games. It's getting on and being an entertainer. You are putting on a show. Alright. Now, let me go ahead and grab the samurai sword that every gym has. Okay he's dead. A larger audience and and to have that audience I think stay with you you have to bring something extra you know you have to find your niche you have to find what works and what connects with the audience and and what makes them laugh of what makes them keep coming back You gotta make it a little more exciting alright so I wanna hanging bishop have everybody in suspense for a moment I think the real most important thing is if they just get used to being on camera like in any sort of performance thing is get used to talking on camera you know I my first ORDINAL few videos were terrible but because I sat down and did 6 to 8 hours TIME a day I just got used to talking and I got over that uncomfortable hump Go into Twitch NORP purely with the expectation that you're going to make money, make a job out of it, have all this growth, and it's gonna be great. You're probably gonna burn out prior to getting to that point because there's very little payoff for a long time, right? Like Years DATE generally before you really start to see a payoff and so, you know, those first ORDINAL few times your streaming, nobody is there. One CARDINAL person shows up every 30 minutes TIME as high maybe and leaves, right? Like, It's very Discouraging I think for a lot of people and so you have to be there just loving it you have to love talking to yourself when nobody is around you have to love just the game that you're playing all of that stuff because it takes a while and I think the majority of people burn out prior to getting To the like profitable point of it And Have it. My very own YouTube ORG , Twitch ORG , Discord GPE , and streaming channels all ready to go live. It's available social media ecosystem just on the verge of thriving. So, don't forget to smash like and subscribe and visit my Patreon for perks. Also, go to my merch page and one CARDINAL last thing, stay cool, my friends.
This is live stream shopping one of the hottest trends in China GPE . Night tens of millions CARDINAL of people watch live shows hosted by influencers like Thea PERSON and by the products they recommend on e-commerce and social apps like Taobo and Do Ink the Sister app of TikTok Julie Yinke PERSON yeah my dad's having a call with a function About you know only shopping is about the experience it's about having fun you gotta see 3d you gotta see in some kind of action it's almost like a theatre act the internet craze has taken over China GPE by the end of 2020 DATE the country had almost 400 1 million QUANTITY live stream shopping users China GPE 's live stream e-commerce market has also grown dramatically Estimated value of 161 1 billion dollars MONEY and 2020 DATE . It's becoming popular outside China GPE as well So is live streaming the future of shopping. Live streaming is not a new thing and China GPE is started in 2015 DATE with the roll out of fourG. First used for entertainment and socializing. Many live streamers perform for their followers or chatted to them making money by receiving virtual currency and gifts. In the west live streaming is mainly the doming of avid gammers. It's broken into e-commerce. China GPE you actually has a very big ecommerce empire so it uses these super apps what we call that you have payment you have search of information you have recommendation system and you have huge amount of goods available on the platform And SOS ORG a lot of consumers. So with this advantage they merge these features of live streaming to make the influences actually so good. Here are the perfect choice. Nice, neutrals, beautiful prints, nothing overwhelming, and the warmth and comfort of flannel. This is Traditional TV shows a one CARDINAL way direction whereby a host introduces a product demonstrate so the things and say Courty ORG 's number or something Very very big difference. They call this different psychology and live stream shopping is a very entertaining way of actually engaging someone else. When you shop actually you this live streaming video will continue it will minimize into a corner and you can like buy the items and pay all on the same app after that the live streaming scream will just enlarge by itself and the promoter will come back to screen so it's like very convenient How about one of China GPE 's biggest e-commerce platforms on by tech giant Alabama GPE added a live streaming function in early 2016 DATE ? In the following years DATE , other e-commerce and social platforms like J. D. And PERSON Doing, also integrated this feature. Hey Countdown PERSON .
Over 70 1 billion dollars MONEY worth of goods was sold by a live stream on Taupo in the years through March 2021 DATE . Surveys show that over 60% PERCENT of live stream uses in China GPE or watching shopping shows and over 65% PERCENT of them shopped at least once via live stream 2020 DATE live stream shopping got a huge booth during the pandemic We're in lockdown and many retailers were pushed online. People, you know, doing the lockdown, felt like there's a need for more social interactions. Live platform creates an interesting kind of environment that these people discuss that I'm actually interacting with you And live stream shopping brings in a lot more variety of things that people could buy and satisfy you know the sense the sense of a music control especially during the pandemic Add the heart of this craze are the top influencers who have tons of millions CARDINAL of followers and supports millions of dollars MONEY every night. Booster on south and influence. So if you think about China GPE 's live streaming you have to know the king and queen of the influences the queen of live streaming via she is actually having the biggest viewership and the biggest sales volume for long time on top of platform she can sell everything from like Lipsticks PERSON , homes, and cars. One CARDINAL time she offered her followers to go on a Tesla ride with her and she even for once so they rocky launch in her live streaming room for 40 1 million rand MONEY . The king More widely known as lipsticks brother. He used to be a cosmetic sales before he turned into live streaming e-commerce and he knows a lot about the cosmetics. So, he's the one that will actually put the lipst All himself when he's on the show Top live streamers like Via and Lijati GPE have become celebrities in China GPE and can earn millions of dollars MONEY a year. Although not everyone can be as popular mid ranking live streamers like Tiffany Stewart PERSON and a good income through sales commissions. John Leida PERSON Now is your little helper. That's so true. A lot of successful livestreamers are generally very good at communication They're very good at articulating very simply what the product does what a product doesn't do in order for them to sell they need to be trustworthy and appear trustworthy and they need to you know show in some ways that they're authentic right so for Able to articulate that quite a bit through the body language, through what they say, for example, the church he will also say things about things about certain products because to him that is honest opinion and something that Want to hear that? And so they seem very credible. They seem very trustworthy and don't forget they also very entertaining and very interesting. Over your familiarity jazzy one CARDINAL Guinness ORG record for like the most lipstick applications tomorrows in a 30 seconds TIME . So, if you're able to create a lot of bus, you're gonna interesting things that you do. People who don't want money.
Applications tomorrows in a 30 seconds TIME So if you're able to create a lot of bus you really interesting things that you do people who may not wanna buy lipsticks but also streaming just to watch what I did and then from there you might get hooked Live streamers also use cell techniques such as limited time or supply. This sense of scarcity can often encourage viewers to buy. The platform in the South LOC creates an enhancer some of these things but you see it live suddenly because social proof has taken over meaning that hey other people are interested other people are joining in other people want the same product and they add in a chat and they ask questions and they say oh I want this too what happens then it makes the whole product even more scarf But it's not just influencers local farmers luxury brands even mutual funds have also started their own live stream shows. Working with very top tier live streamers can be it's not necessary that the benefits will end up with a brand so we see company executives opening their own shows and we see like PNG ORG have their own sales room We also have like local governors in like small towns to sell their agricultural products so the live streaming is definitely transform the way product owners can think about how to reach their consumers and enables a lot of players to actually sell The live stream shopping is going global merchants in Southeast Asia LOC have embraced this trend. And in the west Amazon ORG has upgraded its live streaming function Interactive features like chat rooms. Companies including Google and Facebook also developing an investing in technologies to integrate video and e-commerce. No. If you look at the numbers alone Yes, no. You know that they can sell and you know that, you know, they can January DATE revenue. Are they able to sustain it over a long period of time? It depends on how you know where they are at changing some of the things that they do. But you can't expect consumers 1 day DATE turn into virtual shopping for good there will be the nature of us that crave to go into the store to touch the goods and actually wear it and see how it looks like and walk around that with our friends and those things wouldn't be replaceable With live streaming. You could imagine Oceans NORP are actually the largest battery We store in huge amounts of energy in the oceans. The wave of motion can be very deep it can extend down several 100 metres QUANTITY I want you to get to the near shore About 50 m the whole water column is moving backwards and forwards. As we search for ways to reduce our lands on fossil fuels some are looking to a largely untapped potential source of renewable energy. In theory waves of the coast of the United States GPE alone could generate over two 1 trillion kilowatt QUANTITY hours TIME of electricity a year. Enough to power more than Of the country. Intensifying subside not as quickly as the wind.
Two 1 trillion kilowatt QUANTITY hours TIME of electricity a year. Enough to power more than half CARDINAL of the country. Intensify and subside not as quickly as the wind and that means that it can produce a smoother power generation curve. One CARDINAL of the potential advantages of wave energy is that it could act as a complimentary source of power. Compared to other renewables on the grid if Scaled up to commercial scale. For decades DATE engineers have been trying to convert wave energy into electricity. But a host of technological and financial challenges have complicated their efforts. In the years DATE from around 2006 to 2015 DATE there were Hey bankruptcies in the sector and this was largely because of a lack of kind of continuous Proven projects out at sea with reliable electricity. She's generation. Since then companies have been trying to develop the technologies but a steadier pace and with a smaller cash burn. With the same questions remain Companies develop devices and technologies that actually work Energy just a novelty or something that can become a major renewable energy source. The sea is about challenging environment within which to operate apart. Sea water is priceive and conditions are very rough so this means that power projects don't have a very long lifetime and it increases operating and maintenance costs. Partly because of that many early wave energy projects hit rough waters such as the palamus wave energy converter in Portugal GPE and the islampic project in Scotland GPE . Hasn't stopped others from trying. Companies are focused on testing projects out to see proving that your ability Trying to raise And bring down cost. The sector hasn't really converged around one CARDINAL single technology design and companies are kind of undercide about which design works best. Finland GPE based AW energy is a veteran in the sector. The first ORDINAL proof of concept of the company's device was made in the 90s DATE after divernovasari PERSON observe the strong back and forth movement of a hatch cover in a shipwreck in the Baltic NORP The waves are generated far from the coastline. So the wind blows on the on the surface of the water. In the water part of course to rotate And that rotation extends deep down below the surface and and the waves can be very long. They can be several 100 metres QUANTITY long. Unless they come into the near shore this rotational energy Turns into an electical and a gin eventually back and forth that you probably noticed if you've been swimming on the seashore in large waves your pulled in and out that's the energy that we're extracting there's a sweet spot where we deploy so around 10 to 15 metres QUANTITY of water depth that's where there's still strong wave energy coming in after Research prototyping and testing the company is deployed wave roller. A 350 kilowatt QUANTITY device in the waters of Portugal Wave ORG roller has an 18 CARDINAL m wide and 10 CARDINAL m high steel panel fix to the sea bed via floatable foundation The panel moves back and forth with the waves capturing the energy. It's in the Hey it's it's protected from the extreme waves we celebrate electricity by capturing the Movement with hydraulic circuitry in a machine room underneath the surface That hydraulic energy we turn to electricity with hydroliccumulated and hydrolic motors and also generator. The wave roller has survived large waves at sea for over a year and delivered electricity via an underwater cable to the grid in Portugal GPE . Meanwhile, the company has won a two CARDINAL . โ‚ฌ 5000000 MONEY grant to work on an upgraded version of the wave roller aiming to increase the electricity
Meanwhile the company has won a two CARDINAL . โ‚ฌ 5000000 MONEY grant to work on an upgraded version of the wave roller aiming to increase the electricity generation capacity to one megawatt QUANTITY . The upscale device would have a bigger Panel two power take off units and improved software to control the energy production They can into use a bay prediction algorithm that kind of tells us what kind of waves are coming in to our device That gives us a few seconds TIME to prepare For capturing more energy Difference in daddy's significant Our future plans are to deliver technology around the world. So I'm hoping we can be Working on on delivering technology to projects in Asia LOC And and also in in American NORP continents as well. While is really company eco wave power is taking a different approach to capturing the power of the ocean For the company's founder in a brotherman developing new sources of renewable energy is a personal mission. I was born in Ukraine GPE in 1986 DATE In 2 weeks DATE after I was born that you're noble nuclear reactor exploded causing the largest in history no clear disaster I was one of the babies that got hurt from the negative effects of such explosion i had the respiratory arrest and a clinical death. Lucky my mother and nurse approach my crib on time and gave me a mouth to my office meditation which saved my life. I got a second ORDINAL chance in life and decided to do something good with it. Growing up in a wanted to be a politician to positively change the world. After working as a translator at a renewable energy company she decided to change parts. Solar and wind energy were fully commercialized there were a lot of amazing technologies implemented everywhere I saw that wave energy although it's any men's source of electricity The biggest companies in the world are trying to develop wave energy with no success and there was kind of a race going on in the world of who is the company that is going to develop a viable wave energy solution first ORDINAL In 2011 DATE the then 24 year old DATE in a co founded eco wave power Instead of installing devices offshore the company's devices are attached to existing brake waters jetties and peers Our technology is very cost efficient especially in comparison to the offshore technologies because we don't need any ships, divers, underwater mouring, or cables. We install an existent man made structures and all our expensive equipment, the generator, the hydraulic conversion unit, the automation is located on land just A regular power station. Since 2014 DATE until 2020 DATE . Here you can see how the technology works. Basically the floaters are going up and down and pushing the hydro cylinders which transmit by the gradible fluid into land located accumulators. Which is turning the generators. System is controlled by smart automation system which you can see right here and in case of upcoming storms the system automatically raises the floater above the water level and keeps them in the airport position until the storm passes. The company has been operating a 100 kilowatt QUANTITY grid connected device in Gibraltar GPE since 2016 DATE . Which is enough to power 100 CARDINAL households. Currently ignoring her team are working on another 100 kilowatt QUANTITY project at the Porter Jaffa PERSON in Telavi GPE The project will be also the first ORDINAL time in the history of Israel that wave energy will officially connect to the electrical grid And our goal going forward is to expand it to all suitable break waters in the city of Teluvi GPE and to supply significant part of the city's electricity needs. Today DATE engineer is an entrepreneur
Reply significant part of the city's electricity needs. Today DATE engineer is an entrepreneurs are still trying to crack wave energy. Globally only a few 100 kilowatts QUANTITY of wave energy a deployed compared with gigawatts of offshore wind. But the field has come a long way in recent years DATE and with the right engineering solutions this new power source could eventually become competitive with more mature renewables like solar and wind. I would have a lot more confidence in the success wave energy companies today DATE as opposed to like 20 years ago DATE but in the next few years DATE or maybe the next couple of decades DATE it it will be more likely to be used in remote locations like islands that are otherwise dependent on expensive Diesel ORG power or out at sea on gasty commissioning rigs or for parring underwater or Thomas PERSON vehicles. So definitely wave energy can compete with other renewable energy sources but I personally believe that this is not a competition. In order to have a 100% PERCENT renewable energy friendly world we need all renewable energy sources to work together Yeah. Number four CARDINAL . Hey portal Hey portal can you please tell me? Please wait You know, I've covered a lot of companies. I've covered a lot of machivalian NORP companies Where, you know, people play rough. I don't think I've ever seen anything on the scale that Nissan ORG . It's cool. Post-traumatic elements was revender pasty's home being raided by court officials in Yokohama GPE . So Rob Posse PERSON 's journey into the the darkest recess is The Japanese NORP corporate world started when he was the general council the highest corporate lawyer position in the company In the past few minutes Nissan TIME has revealed that it's chairman has been arrested after allegations of serious misconduct. He was tasked with investigating Carlos Go PERSON And he he was told An internal investigation and get to the heart of the manner. Serious conflicts of interest He is one CARDINAL of the few.
And then along the way he started to notice serious conflicts of interest He is one CARDINAL of the few people who knows an extreme amount of detail Ready to tell his own story on the record about some of the events that happened My name's Ravinda Passy PERSON . I'm the former global general council of Island Motoco Limited ORG . And you could say yes I had a front row seat in terms of what was going on. When Carl PERSON is gone Years ago DATE he was depicted in Japanese NORP comic books as this hero and and now maybe we'll see comic books where he's the villain. In corporate Japan GPE , a Nissan ORG was quite an unusual company. It was led for two decades DATE by a non-Japanese NORP executive Will Carlos Gone PERSON was a hero in the Japan GPE In Japan GPE in worldwide it was definitely Carlos Gown PERSON in a country with few foreigners at the top he stood out Lions into one CARDINAL of the most competitive in the world Yet is the years went on you know he I think his ambitions changed a little bit he started thinking about legacy plays and one CARDINAL of them was to really tighten the alliance between renew and Japan GPE And unbe notes to him there was a contingent of senior Nissan ORG executives that were really felt threatened by that move. They really thought that they would lose complete control of the the the car company and even in the government there was probably a little bit of anxiety about A national champion In the auto industry falling under full blown foreign control. Carlos Gone PERSON was an auto industry leader respected by many in Japan GPE He's in jail. Completely out of the blue. This was in November of 2018 DATE . He was coming to Japan GPE on Nissan ORG 's corporate jet for a regular executive meeting, and he was met on the tarmac by japanese NORP authorities who whistom away to jail, and charged With financial misconduct crimes. So, what happened was it a power struggle ensued inside the company and somewhere along the way, it was criminalized By that I mean that there were allegations leveled at Carlos Gone PERSON about the way he reported his pay to Japanese NORP authorities the way he handled money inside the company that in other contacts might have been a board action might have been held handled Nissan ORG decided to take this this difference and take it over to the Tokyo GPE prosecutors office and that unleashed a chain of events that would shake the entire auto is So after Carlos Goin PERSON was arrested a Nissan ORG launched an internal investigation The events that led up to his arrest. Survive Parcy with task Investigating Carlo Scone PERSON and he he was told yet to the heart of the matter find out what Carlo Stone PERSON did wrong and bring it to our shareholders Yeah it's really complicated because you had Things coming out of the weeds. 2018 DATE investigation has has started and we become Aware ORG of matters in terms of conflicts actions by certain individuals That cause some concern Because things might not Be what they've seen So, in our story, we really took a close look at Harinata PERSON in his role in Carlos Gones PERSON .
Quite be what they seem So, in our story, we really took a close look at Harinata PERSON in his role in Carlos Gomes GPE downfall. Harry Nato PERSON is one CARDINAL of the most fascinating figures inside Nissan ORG . He's also a lawyer. He's originally Malaysia GPE . And he had a meteoric rise through the company Became ORG very very close to Carlos Gone PERSON and other top figures. He had a front row seat and all the major strategic deliberations at the at the company And when he discovered that Carlos Gone PERSON as his final legacy play Was going to tighten the relationship between Rano LOC and Nissan ORG . He made a decision to go against Carlos Gone PERSON And he became one of the key figures That decided that Carlos Scone PERSON had to go. Harry Nardo PERSON was somebody who actually recruited me into the company. So, I have a long standing Relationship with him or did have a long standing relationship with him. For for many many years he was a mentor. Credibility of the of the process right at the start. I renewed I had a plea deal With the Tokyo GPE prosecutors. That suggests He was intrinsically involved in some of the wrong doing or the allegations of wrong doing It just Smell ORG right. Just doesn't sit right. So, there was a basic conflict of interest. In other words, I had to deliver results Japanese NORP prosecutors to avoid his own criminal liability and he's accusing and leading the investigation of Carlos Gone PERSON . Some of the people who Had been involved in the original alleged crimes. We're also looking into the affairs themselves. Rovender Posse ORG began pointing out some of these conflict of interest issues The reason for that is essentially his concern was for the company If the company is own investigation into itself was compromised that could lead to a very weak position in various losses that it was dealing with across the world. At discussions with Harry ORG discussions about Discussions with HR about some of these conflicts because at that point We reported into him. You know, at the time, everything was quite As you can imagine it was we've gotta do this we've gotta do that we've gotta move fast But when you step back and look at some of these things you just think my God What was going on here because Me Members of my team were being placed in immediate Danger PRODUCT . You're you're They both happen to be forest Certain compliance professionals need to go into He's in Brazil GPE for example and retrieve evidence. They've gotta do it very carefully because if they don't do it carefully they're gonna get convicted Criminal activities Unlikewise A team of lawyers will commission to go to Lebanon GPE . I mean one of my immediate concerns was why are lawyers from Nissan ORG being sent to go to Lebanon GPE to retrieve evidence? These are just lawyers that corporate lawyers from Nissan ORG . You had Revelations that A number of executives that benefited From share appreciation rights When they shouldn't have. I mean, you know, substantive amounts of money being taken by these guys when they weren't entitled to take them. And you do think yes. This code to look later on.
Entitled to take them Do you think yes How was this going to look later on? It's going to look quite concerning. Suvan triggered for me The sort of assessment that well I'm gonna have to do something Because Up until this point I haven't put down on paper These conflicts and these issues So He makes a faithful move. He writes this letter to the board listing Read suspicion he has in great detail backed up by evidence backed up by memos PERSON of why this internal investigation had serious problems. He sends a letter to the board and it's crickets. He doesn't hear much of anything Nothing happened there often Nothing at all. Just like it just gone into a black box. He began to suspect that there was a desire even at the highest level with a Nissan Kind of sweep these conflicts of interest under the rug. For me Think Again with hindsight People must have thought that this is the nail that's sticking out and we can't have this. Within 3 days DATE of me submitting that to the board of directors that let's do the independent board directors I was removed from the Executive ORG conduct matters. Glen PERSON told I could not attend board meetings anymore. And up until that point I had attended every single board meeting I was then also told that after 8 years DATE of being in Japan GPE I'd be going back to the UK GPE . Eventually transpired that I'd be the VP of projects in transformation managing a team of three CARDINAL . So you can imagine what this feels like at this stage. Removal from Japan GPE where I've lived for 8 years DATE had three CARDINAL children there my family has grown up and we've been settled there having A few months early DATE been promoted to Vice President at a global level Demoted So possibly was essentially being reassigned to get him as far away from the internal investigation as possible and also to a certain extent in retaliation to some of the issues that he Recording the internal investigation and horinatta. What happened to rob possi can be seen as a series of of corporate humiliations. I mean, first ORDINAL of all, his immediate responsibilities were taken away from eventually he'd lost, you know, the COVID in general council title. But it didn't stop there. Toward the end of his Hey in Japan GPE And his wife were convinced that they were being followed Ensuring PERSON that period Noticed that once driving my car I'd have other cars following me. First ORDINAL time I noticed this was it around mid March DATE And I was driving. I can't remember where I was going but this gray van Small van PERSON just literally started following me I know just there was somebody in the car taking pictures On lo and behold we were absolutely being followed By either by people on foot Or other individuals two CARDINAL or three CARDINAL normally two CARDINAL burly men in a car different cars at different times following us around
On foot Or other individuals two CARDINAL or three CARDINAL normally two CARDINAL burly men in a car different cars at different times following us around They were following the family as well. You know given We'd seen Right scene the Nissan ORG security department behaving a very very egregious manner with others in terms of following I was very concerned as to what they would do and who they were giving this information to. You do think why What's going on there? I mean this is just not normal. View. Rather dramatic event in the middle of 2020 DATE . Who are you people? Nissan ORG had a hired A legal team and had obtained an unusual court order from the district court in Oklahoma GPE to basically do AA search and and of of his home and seizure of his you know corporate laptop My phone and other and other documents. If you don't let us in now, Have to break this key. So it's a pretty extreme Treat someone who spent 16 years DATE at the company These people have all come in. We don't really know who they are. Apart from the fact that Shown a badge that says the Oklahoma Court ORG And they're here to to recover a laptop On the mobile phone. It was even more weird I'd highlighted to the directors That there That certainness and executives were trying to recover this laptop and this phone whilst I was still in Japan GPE . And I was very concerned because it had evidence on there that related to misconduct matters The forms of inappropriate conduct. It was just another form of intimidation another form of harassment. Forcing me almost to leave the company And the country. Because once they'd retained an obtained these items We were still followed Which again I just couldn't understand what Point of doing that. You know, this is a not a car company. This is not the KGB ORG . I think it's fair to say that Rob Posse PERSON didn't have full battlefield awareness of all the entry going on at Nissan ORG . I mean, hurry not is interesting because he's both charismatic and charming. And one CARDINAL of the most brutal cor In fighters that one could ever run across. If he had fallen into line he would probably still have his job at Nissan ORG be paid Well and continued his work. A career that he spent, you know, 16 years DATE building at Nissan ORG is is your retrievably broken. It's been smashed to Smith GPE , Smith GPE , or Reigns PERSON . He and his family paid a huge price certainly But in terms of being able to sleep at night I think you know he's come out ahead I highlighted issues To the highest levels of the company So that they could be dealt with appropriately by those in charge There was no response to those and there was retaliation against me What's really profound like absolutely profound Is that None of you colleagues. I mean people who you have known for years DATE . Forget it. Yeah. You're on your roof. And Yeah you gotta be ready for that Gotta be ready for that If you take it on anyway
This is the awful truth Always someone in the family that's pushing it. This lady Does not deserve to be taken advantage of At your age with your own grandchild. Yeah. My grandma is having to sue them i'm testifying against them nobody's talking they're one four CARDINAL below right now I get afraid to go on the elevator it's sad that it had to devolve to this it's like a Hey Facebook Thing WORK_OF_ART . Here's a family that on paper you would think has the wealth that so many people seek yet at the end of the day DATE it's seem to sort of rip everybody apart My name is Tom Schoenberg PERSON I'm a senior reporter here at Bloomberg News ORG cover financial enforcement I was approached by someone close to the Sean Stein PERSON family and asked whether or not I would be interested in writing about Beverly Shottenstein GPE and this case that she had Against J. P. Morgan PERSON . It was immediately clear that there was great story here to be told. So, I started just, you know, assembling all sorts of documents that the family made available to me that included a diary that Beverly GPE had begun writing when she started having suspicions about what was actually going on with her money. Beverly obtained her wealth from the shot and steam had a retail empire that has at times included big lots, value city, American Eagle Outfitters ORG , DSW ORG shoes, Beverly ORG 's husband died, and at which point they sold off their portion of the company, bringing them enormous amount of wealth and around 1990 DATE . Her grandson in the late 2000's DATE had both graduated were becoming financial advisors she gave them a little bit to work with and over time her grandson Evan PERSON became the trustee of her entire state. Managing sort of family money is not a conflict. In fact, some ways in wealth management, it's kinda how you get your start. It's kinda the seed that you need to sort of get going in the business but Beverly started.
Is not a conflict. In fact, some ways in wealth management. It's kinda how you get your start. It's kinda the seed that you need to sort of get going in the business. But Beverly GPE started having suspicions that something was wrong probably and around 2016 DATE . Well there were suspicious Things but taken separately without everyone talking about their own Says it was hard to really put it together. Had written a check to her caretaker Dawn that bounced so she went down to her local chase branch to sort of find out what was going on she wasn't getting paper statements in the mail so she asked them to print out a number of her statements having to do with her checking account And her credit card account. So we went to the bank and ask for the statements. And she got a whole year and going through all of them page by page by page. It was there she saw all sorts of charges that she said she didn't authorize or didn't know about. Very suspicious. Start to look at the money part and that's what bothered me more when I saw that money was going and I was not a big spender. In around the same time John she starts noticing Beverly ORG 's son who lived in the condominium below her came up with Evan PERSON with a shredder and started grabbing papers in her office area including some with JP Morgan Letterhead ORG and just started sitting at the kitchen table just shredding documents over and over They came in one morning TIME . Through the backdoor. And they brought this threader inside And then they went in the drawers in the office sent to God all the papers and they start to doing it I was very suspicious because I know you don't go round and get in destroying papers Beverly ORG said that they had done this many times before When she said to me you know Dawn i'm gonna write my feelings in this black book. Each day she would write a little at a time. Around the holidays of DATE 2018 DATE the package had arrived the FedEx GPE package and in it were Beverage For ORG this fund to the two CARDINAL and over five 1 million dollars MONEY over the course of several years DATE . Really the beginning of it that was Sort PERSON of the tip of the iceberg when it became That something was going on that my grandmother really wasn't aware of this funge. You know, Beverly GPE started to panic. She was got really upset and called, you know, J. P. Morgan's PERSON headquarters in New York GPE and ask for Jamie Diamond PERSON . She said she was told someone would call her back. But she says that that never happened. She wrote a letter to Evan PERSON and Abby PERSON and in there, she she laid out a number of things that Worth of jewelry in a safe deposit box and that her son Bobby PERSON had the key to that box. That jewelry had gone missing. All this was kinda packaged in this, you know, five CARDINAL page, handwritten amendment tool and trust. Evolving narrative about why the joy was taken the only truth we really know is that the jewelry is gone but why it happened there been a lot of different stories you just don't take your mother's Wonderful things in hand it out. Email that note to JP Morgan ORG to sees all activity on her account. After that. And change brokerage firms. They were actually vacationing one four QUANTITY below downstairs through there right now. The next day DATE , Beverly ORG 's in her her place. A granddaughter still in in Place visiting Don is there Up comes Bobby kinda PERSON barging through the door and he's screaming about what.
Granddaughter still in in her place visiting Don is there and up comes Bobby kinda PERSON barging through the door and he's screaming about what was sent to the JP Morant they're now investigating now And he's furious takes his mother in sort of puts her into a chair gets pen and paper She says physically forced her to write a retraction letter. Pushing me around. Time i was really afraid to i had to take her to the doctor Did an X ray Vacation was in so much pain. The phone number had to be changed. Gonna have to hire guard to be outside just for protection. Was terrible. Beverly brought a case before the financial industry regulatory authorities usually known as Finra it took several months DATE of hearings she sees all sorts of transactions that's going on hundreds CARDINAL of them that she claims that she never knew about never JP Morgan PERSON 's files is having been direct request from her Sale of a large amount of apple stock worth several one 1 million dollars MONEY as well as all her stocking big lots. We're making all sorts of trading on her account that was generating millions of dollars MONEY in commissions for themselves in the bank yet she Violating their Representing themselves and they also found that the bank and her grandson Evan PERSON reliable for elder abuse. Evan PERSON and Avi they were fired from J. P. Morgan PERSON . They issued an award of about 19 1 million dollars QUANTITY . I reached out for comment and J. P. Morgan PERSON emphasized that Evan PERSON and Avi were no longer with the You know the law and the facts that Finn PERSON were kind of used to decide the case against them and are seeing if they can have it withdrawn Her son Bobby Criminals PERSON and he also admits to taking her jewelry and he says he needed it to pay off some bad business debts he had Say never once came up to say i'm sorry. Bin PERSON and apology Acceptance I don't think we'd be in the position that we are now. Since the piece came out, we've, you know, we received dozens CARDINAL of messages from people. Many of whom are telling their own. So, the personal tales of Kind of financial advisors gone bad or family members who You know those within Seems sad it's really it's really resonated with a lot of people who I Keep you know hearing a lot of feedback about beverly and how you know a lot of people feel she did the right thing. To stand up for yourself and try to write an injustice she was adamant that she wanted to stand up for herself but at the end of the day DATE They did wrong It's painful life lesson. You know Beverly taught them that you don't mess with grandma.
On April 20 DATE oil markets did something that never happened before and they crashed went into negative territory and close the day DATE at minus $40 MONEY meanwhile In a place called The group of nine CARDINAL traders led by a guy called cuddlers made 660 1 million dollars MONEY over the course of a couple of hours TIME . The price of oil has collapsed to a record low. We've never really seen anything like it. WTI this morning down more than 35% PERCENT . But the all price went to minus 38 it went far lower than anyone had expected and so lots of people on the market were saying well hang on something else is going on here A couple of months later DATE I started to get wind through a kind of network of sources that a tiny firm in their outskirts of London GPE had made a huge amount of money that day DATE and potentially had some part to play and what happened? The information we got was the nine CARDINAL traders of vaca capital ORG London GPE had made in the region of 660 1 million dollars MONEY in 1 day DATE as a group I think they made as much money in 1 day DATE as Apple ORG makes from its international sales in 1 day DATE I mean it's an insane some of mine did they pull off a fantastic trade did they predict the way the market was Absolutely right or was there something else going on and had they actually And that investigation is is ongoing. So Paul Commons ORG is a trader who cut his teeth in in the pits in the the 80s DATE and 90s when everyone had a nickname his was cuddles Imagine ORG that was a very sort of Type of world where people are doing you know hundreds of thousands and millions of dollars CARDINAL trades by Each other Giving hand signals and then scrolling on scraps of paper The culture of the trading pits in London GPE was very influenced by the working class guys who became traders there. They weren't like the city bankers that had gone before them. They weren't usually Oxford ORG or Cambridge GPE , you know, they didn't wear saddle row suits. They were ordinary working guys. You happen to have a talent for trading. Came from Essex. Things 400 CARDINAL traders in the pets and cuddles in his you know all in gas paint was described to us as amongst the top three CARDINAL among you know in amongst that was very successful and and made you know very large amounts of money as a as a young man but you know inevita Hey mechanization and the arrival of electronic markets was the kind of death now for the pits and in 2005 DATE the IPE ORG closed down and when the pit shutdown a lot of the traders who worked there lost their jobs or quits or went to work for financial institutions but Paul PERSON comments decided to start his own Some of them are ex pit guys cut from the same cloth as him lots of them are actually sort of in their 20s ORDINAL and they're his you know drinking buddies son or there he's own kids friends from football you know they're they're young lads Hungry GPE and ambitious and he brings them into the fold and fairly shortly he's got you know maybe a dozen CARDINAL or so traders that they're independent let's be clear but they're all part of this collective. Yeah I'll let Liam do with Essex I am from Essex so I feel like I'm free to you know to gain to this. Sweet as they say. If you want to ask someone in Britain GPE how they would imagine AA conversics person. They would see someone who's maybe slightly flamboyant with AA sort of cockney accent, a sort of Which you start actually.
Sounds slightly flamboyant with a cockney accent guy Richie PERSON style accent You know, not afraid to splash the cash but it's probably pretty bright and it's done well for themselves. But you know these guys they drove around very nice Rolls Royces and Bentley ORG 's they went to places like Mar Bayer PERSON on holiday Fading boys is very wealthy place. You have to have considerable income to be able to afford to live in that village. It's a really nice place to live. And it's 20 minutes TIME to cheap ride away from the city. Earlier in the summer TIME we have this lead which is that there's this tiny firm called Vega Capital London ORG They were the biggest winners from the biggest oil crash in history. You know, anyone that covers markets is gonna be surprised about that. You know, you're thinking your BPs of the world, your Glen PERSON course, but is this tiny firm and one CARDINAL of the big challenges that we had was actually finding out who worked with Vega Capital PERSON . It wasn't immediately obvious, not first ORDINAL we had absolutely no idea. If you go to the Capital website it says it's under construction If you do basic online searching it's very difficult to find anyone who's publicly connected to the company. So inevitably we're incredibly curious at this point. Like who the hell are these people? The more reporting we did the more it became clear that this group were connected socially as well as professionally. They went to weddings together. They played golf together. They would go on holiday together. We found out that a number of them were members over the West Ham supporters club in London GPE . A few of them started Companies together so you could see all the connections between them and start to see a distinct group emerging. And it really just was this kind of shock that you know this wasn't just like a hedge fund or a firm you'd never heard of. This was actually a group of buddies who all had the same experience on this day DATE and it had Made a huge amount of money. So if you're an oil trader there's a number of different ways you can trade and and probably the most popular is WTI futures contracts and it's basically a contract that says I'm gonna buy a 1000 barrels QUANTITY of oil from you at this point in the future or I'm going to sell a 1000 barrels of oil to you This point in the future. It's actually just a financial contract to gamble on to predict whether oil is gonna go up or down. On the 20th of April DATE in Essex there have been signals for a while that this was gonna be an exceptional day DATE in oil markets and we know that some of them arose early and started their trading in the early hours of the morning TIME while it was still dark outside Essentially what they were doing is buying contracts that gave them An obligation to buy oil at whatever the price ended up at 2:30 PM TIME . So they're basically placing a bet that oil's gonna fall throughout the day DATE . But the simultaneously sailing lots of oil as well. And the weather they make a profit and how much profit they make is the difference between what they buy the oil for and what they sell the oil for. Now of course we now know throughout April 20 DATE the price dropped and dropped. So this is going very well for them You know they are committed to selling oil at these prices and the prices are continuing to fall which means they're gonna be able to offset it and buy oil at cheaper at the end of the day DATE . Now once it gets to kinda GPE 1:32 PM TIME : that's when things start to get really Suddenly there's a kind of influx of of buyers and sellers you know desperation increases in the market and trading volumes go up now 2:08 PM TIME : exactly something bizarre and unprecedented happened And it fell to a record level of minus $38 MONEY . We've never seen anything like it period in terms of the contraction of the global economy. Huge golf between what they were buying the oil for what they were selling it for and able them to make more money than they ever thought possible. So they're profit was the difference between Minus 37 and all of these positive numbers on every contract they sold. The price of crude briefly hit minus $37 MONEY a barrel for one CARDINAL group of traders operating from a small office. It was a very very profitable day. It's important to remember this this had never happened before in the history of all trading. No one could have predicted it. I can't think of another example of where Interest rate or you get paid on both side you get paid both to sell
Interest rate do you get paid on both side you get paid both to sell One CARDINAL thing we know about the cuddles trading arcade is that they were very comfortable taking large risks and you know you have to be clear this was a large risk yeah we spoke to oil traders both people that know these guys and people that don't and they also say that this is you know incredibly risky and that's actually Stops a lot of all traders doing trading like this. They simply aren't willing to stomach the risk. But cuddles and his friends were So when they're kind of final calculations came down the group of the nine CARDINAL most profitable traders made 660 1 million dollars MONEY or thereabouts between them I mean if you can imagine I think three CARDINAL or four CARDINAL of them made in excess of 100 1 million QUANTITY each Wanna be astonishing things about this trade is that two CARDINAL of the individuals who made more than 100 1 million dollars CARDINAL in a single day DATE were in their 20s. One CARDINAL of them was 22 years old DATE . You know, only a few years earlier DATE , he'd been posting on his social media about doing teenage stuff with his mates in town and going to see girls and rap music and here he is Years later DATE making 100 1 million dollars MONEY in a single day's DATE trading. When me and Liam PERSON discovered that we were just we couldn't believe it. We couldn't believe what we were seeing. All trading is a is a oh sum game anytime you're making money is an all trade as someone else is losing it amongst the biggest losers were the investors in this Chinese NORP fund crude oil treasure fund There were thousands CARDINAL of them and they lost everything. Lots of people have put their savings into oil funds. They lost money that day DATE . Big banks and brokers who sort of stand in the middle of trading parties. They lost money that day DATE . And another interesting thing is the oil producing countries like Q eight or Canada GPE . They sell oil. An average of the WTI closing price over the proceeding month DATE so the fact that one of those numbers in the average was minus 37 meant if you can imagine countries like Saudi Arabian NORP Q eight CARDINAL potentially lost a couple of dollars MONEY on every single barrel of all they sold that month DATE . Beg PERSON a capital's traders made such an extraordinary sum of money that it was inevitable they would be some scrutiny of what they did but it wasn't just the sums of money they made in a vital half an hour before the settlement price was set they were by far the biggest sellers of all future Which is an incredible thing to think about when you consider that the other participants in that all market are gonna be the world's biggest banks you know oil majors BP ORG and shell and here you have a group of nine CARDINAL guys in Essex who are having a significant influence over a global market for oil I think you have to assume that if these guys have made seven 1 million QUANTITY or 10 1 million dollars MONEY they probably would be celebrating in Essex right now but the fact that they made closer to 700 1 million QUANTITY has meant that they are facing understandable scrutiny we wrote individually to all the all the bega traders Did exceptionally well that day DATE and we got a letter in response from a law firm who representing the group The law firm was at Pains ORG to point out number one CARDINAL they haven't been accused of any wrong doing That they all traded independently and separately and they'd basically all made up their own minds that this was what was going to happen in oil markets based on publicly available knowledge and decided to execute this trade. What I love about these stories is there's a real variance of opinion and some people will look at what happened and think that must be dodgy. They all traded at the end of the day DATE . They all made a huge amount of money while all these people lost. That's But lots of people say these guys are acute disadvantage. They're in a market. There's inhabited by, you know, huge Technology driven And firms and oil giants that have got all the advantages in the world and when you get a bunch of Essex geezers who essentially beat the market and find a way to make a huge amount of money they should get a pat on the back really because that's the dream. Since this happened The guys have stopped trading the monthly DATE settlements that they've done so well out in the past. Several of them have set up new companies. They've essentially gone very quiet. You know, you kinda social media presence they had is Is.
Clements that they've done so well out in the past. Several of them have set up new companies. They've essentially gone very quiet. You know, you kinda social media presence they had is is Kinda GPE close down by all accounts there Waiting this out. It's certainly too early to try and predict how the regulatory investigations are gonna pan out you know we just don't know There's a number of potential outcomes for these guys. You know, potential punishments if there are any findings of manipulation against Vega PERSON or anyone affiliated with it, might be, you could be fined, you could be banned from trading, You know in the most extreme cases there have even been criminal prosecutions in the past Of a people who have been found to have been manipulating the settlements and misconduct related to to trade at settlement. There are other outcomes too. You know one one CARDINAL obvious one is gonna be they're able to walk away from this life changing trade. With all the money that they made and celebrated is heroes in the training community that you know they'll go As legends. It's very important given that nature of the climate crisis right now for the general public to have an understanding of what progress is or is not actually happening and I think many readers right now Big bold climate claims. And they would be forgiven to think that Well on our way to meeting the emission reduction trajector Need PERSON to be on. For this sort of disconnect is the use of offsets that aren't doing what they claim to be doing We have a massive potential for sort of willful blindness we can convince ourselves of things regardless of what the facts are and so that's what tends to happen in these cases it's not It's not that anybody is setting out to commit climate fraud They they sort of walk themselves into a situation and they convince themselves of one CARDINAL thing and that allows them to convince themselves of another thing But at the end of the day DATE , they're doing something that makes no sense at all. My name is Ben Elgin PERSON I wrote the story about how the one 1 billion dollars MONEY market for carbon offsets is setting back the fight against climate change. So one CARDINAL of the challenges in reporting on carbon offsets and trying to figure out what's going on is really finding good experts who who have been steeped in this marketplace and are willing to candidly talk about it One CARDINAL of the best people for this is a fellow named Mark Trexler PERSON and I've been talking to him for more than a decade DATE . My name is Mark Krexler PERSON . I've worked in climate change for the last 30 years DATE . I was actually hired by the World Resources Institute ORG in Washington GPE to work on the first ORDINAL carbon offset project In 1988 DATE In terms of defining a carbon offset that one CARDINAL of the beauties so to speak of greenhouse gases sort of the silver lining of greenhouse gases When you put up a molecule or COtwo ORG into the atmosphere it can be anywhere in the planet in 7 days DATE . And therefore, you know, if there's an option to reduce emissions on the other side of the planet and you can do that very cheaply as compared to doing it in your factory for example, then, why not pay that person, that factory on the other side To reduce their emissions Then you are in a sense of setting Emissions and the atmosphere doesn't really.
At factory on the other side of the planet to reduce their emissions Then you are in a sense of setting your emissions and the atmosphere doesn't really see your emissions anymore So carbon objects have been been around for quite some time and they were actually key with these international climate agreements such as the Keoto PERSON protocol which mandated the wealthiest Reduce their greenhouse gas emissions. The treaty was signed on the 11th of December 1997 DATE . A business community General Measures might be coming down the pike on climate change much more cost effectively We've seen a huge surge in companies making big proclamations about how they're going carbon neutral or oh in out all of their carbon emission Carbon footprint and at oh. Believers committing to net oh initiative Achieve PRODUCT a net oh admissions world. We began looking at these corporate claims of of dramatically reduced emissions and we noticed so many of these companies were using carbon offsets to to to achieve these aims. And as we begin to look at the carbon offset projects themselves We found is that the environmental benefits claimed by these companies are not actually what they what they seem to be. As we sort of saw and spotted a number of these very aggressive carbon offset projects which appeared to be generating inflated credits or bogus credits We saw a number of them were associated with the nature conservancy. This surprised us the nature conservancy is the world's biggest environmental group they have about a one 1 billion dollars MONEY a year in revenues And they've been around for seven decades DATE They've preserved about 125 1 million acres QUANTITY of land And they've done so many good works over the years DATE and they've been very strong in terms of working with corporate partners. The nature conservancy is taken a different approach. A very pragmatic and pro business approach. They will not go out and criticize a big polluter. But Very happy to work with them Some might say that well that's selling out but others would say and and those at the nature conservancy would say these companies have deep pockets. They can help fund important preservation And we have absolutely no problem working with them on this stuff So companies are very warm and and they've partnered with the Nature Conservancy for for many And yeah let definitely lends a sheen of credibility to these projects. Disney world this year DATE . If you look at for instance Disney that's a sprawling company with theme parks and cruise lines that burn up Diesel fuel. They have office buildings and television studios. I consume electricity. Footprints but it's very difficult to change these fundamental ways their business is operate. So Disney has been a big buyer of carbon offsets that are orchestrated by the nature conservancy. One CARDINAL of the projects that they buy from is called pennsylvania ridges. And that's a plot of land. Most of the land is actually about 3 hour TIME drive outside of Philadelphia GPE . Interestingly this land 3000 of these acres was actually acquired by the nature conservancy in the late 1990's DATE . This land was immediately threatened. There was a pending logging contract on this land. So, they they do what they they've done so well for all of these years which is they go out. They raise money from local phanthoris and they go Developers and loggers. And at the time according to an archive version of the nature conservancy's They when they were proudly announcing this deal they said these threats have been abated because of Acquisition by the nature conservancy.
These threats have been abated because of Acquisition by the nature conservancy. So, it's really interesting now. Fast forward two decades to earlier this year DATE when they put forward this carbon project And if you look through it this land is a key part of that carbon project And what they're now saying is this land is now once again imminently threatened 72% PERCENT of the trees are gonna be cut within 5 years Now DATE , this is just astounding because this land is owned by the nature conservancy. They do not clear cut land that they've bought through philanthropic donations. So this scenario that they've put forward to get carbon revenues is not really plausible And what that means is when you have Disney coming in and and buying these credits. When it eventually lowers its carbon footprint because of these credits well that won't be incredible or truthful claim by Disney ORG . So this is this is an organization that truly understands the the threat of the issue of of climate change and is wanting to do its part to address this However in this situation it just appears there there drive which they've had for decades DATE to increase the amount of revenues that it can use for land preservation work Nature conservancy and many others see that carbon credits as a pot of money that they can tap into to Further their own benevolent aims but unfortunately what this has resulted in is claims of climate progress that just aren't really happening. So the nature conservancy defends vigorously these deals and and they and and others will say look our projects are just following the rules that these registries So somewhat also put some of the blame on the reg Themselves because they're setting up the rules which allow these vapor projects to get up and sold. So we've reached out to all of the companies we mentioned in the story including Disney that didn't want to be interviewed for the story but they Hold us that look we have to rely on the experts out there and those experts they say are these carbon registries that have been set up Most of these nature conservancy deals are set up and sold on this exchanges called the American Carbon Registry ORG . Now it's the oldest of these regist Allow voluntary carbon credits to be sold. They've been around since 1996 DATE . What these offset registries do is they set up rules Carbon offset project has to follow those rules But there's this tension that's always there if Then it's gonna be very hard for carbon offset projects to get up and running. So, there's this this balance going on where the registries want rules that attract projects but they don't want it to be so strict where it will Disincentivize projects from getting listed One CARDINAL of the the challenges with with designing carbon offset systems is that there are normally two CARDINAL people at the table. You have buyers and you have sellers and to some extent, you have policy makers but but you know, the buyers and the sellers are really the ones with the expertise with the with the To really participate hard make a lot of things happen And the the challenge there is is that both of them sort of want the same thing or they're both happy with the same thing. They're happy with low cost, offsets, and a lot of them because that works for their business model. You end up though with nobody really representing the atmosphere so to speak nobody's really representing the climate And and you you end up in sort of a race to the bottom and that's what we've seen happen. And when it comes specifically to the topic of carbon offsets Climate change. They absolutely can't. Bye you know if we're not going to do it correctly in a way that actually does.
Fan of carbon offsets in the sense that they can help mitigate climate change. They absolutely can. Climate change then it's nothing but a distraction. And you know, after 30 years DATE , you have to start wondering, is it really just a distraction? And that's really unfortunate but that's where we are. Ultimately, what needs to be, what needs to happen is systemic change. You know, we're we're sort of nibbling around the edges with some of these different things. We need to change how we produce energy. We need to change how we transport ourselves. We need to change what and how we eat. We need systemic change Associated with transitioning to a low carbon economy. A lot of what we're doing today DATE is not promoting systemic change it's sort of trying to stick your your your thumb in the dike To preserve the current system And and at the end of the day that can't really The hyperloop. There's a good chance you've heard the name by now. This is the hyper loop system. It can take people hundreds of miles QUANTITY in minutes TIME . Ultra high speeds over long distances. New form of transportation that can whisk people from city to city in a flash 9 minutes TIME from New York to GPE DC GPE 30 minutes TIME from LA GPE to San Francisco GPE For years DATE we've been seeing these futuristic utopian renderings of some cross between a spaceship and a monogram But lately the hyperloop is becoming much more real. Yes. It was surreal to be in sitting inside a hyperloop and just even more incredible to actually be like writing down a track in something that was nothing more than a crazy idea 6 years DATE before. Companies all around the world have been developing and testing the technology needed to propel passengers speeds of over 1000 km per hour. But for many, speed is only the first ORDINAL step to unlocking the full transformational effects of a new mode of transportation. Fast is what we just sort of take for granted in the hyperloop world. It's the network effects that really deliver the benefit. And that opens up a completely different scale of economic We've got plans One CARDINAL bills and boats. We're getting around to earth. What if there was a fifth mode? And I have a name for it. Name for it which is called the hyperloop. Hybrid. In 2013 DATE while riding high on the growing success of Tesla and SpaceX Elon Musk PERSON released a white paper outlining the basic framework of the technology he called hyperloop. The basic idea goes a little something like this. A two CARDINAL produces the air pressure to a near vacuum
Paper. Outlining the basic framework of the technology he called hyperloop. The basic idea goes a little something like A two CARDINAL produces the air pressure to a near vacuum like environment. A hyperloop pod has been suspended in the tube. Usually by magnetic levitation. The whole pod can then be propelled forward. Because there's no traditional friction sources like irresist Or rolling friction that would push back against the pod the hyperloop is able to move an incredibly high speeds and do so fairly efficiently Despite its futuristic name however the general concept behind hyperloop is actually pretty old. In fact New York City's GPE first ORDINAL attempt at an underground public transit system in 1870 DATE 's was based on a similar principle. The pneumatic transit system was short lived however only stretching one CARDINAL block and topping out at a rather leisurely 10 mph QUANTITY . While Elon ORG would make some 21st century DATE improvements to this concept and bestow of a 21st century DATE name. He wouldn't end up pursuing the technology itself. Like to focus his efforts on something a little bit deeper. Digging the reckless tunnels via his boring company. It would take another billionaire industrialist to dabble some space flight Wait, not that one. Yeah, that's the one After Richard Branson PERSON would make a large investment in the company hyperloop one it would be renamed to virgin hyperloop. Been trying to do as a company Ultimately it's something that's happening in the next couple of years DATE not the next 20 years DATE . Josh Geigel PERSON is the co-founder and CEO of Virgin Hyperloop PERSON In a familiar text startup story he seen the project go from a garage to a large scale testing facility outside of Las Vegas Building GPE the first ORDINAL kind of hyperloop system in 2016 DATE we've done a lot of work about 500 CARDINAL tests that we've done a matter of the last 5 years DATE What we realize that we need to do is take that technology show that it can be commercial so drive the cost down improve the efficiency approval performance but the key thing is you know is actually making it approachable and safe for individuals. In order to do that Josh PERSON along with Virgin PERSON 's head of passenger experience saraluchi bravely volunteered to take the inaugural ride With her and I were realizing it's like we're the first ORDINAL two CARDINAL people sitting in a hyper The only type of people that have gone through this environment or in space it's in there we are in just like normal clothes because of the system the safety of what we designed really Two Watch PERSON . We accelerated a little bit harder than we would in commercial. Be like a sports car. We got about 108 CARDINAL mi an hour on that test and it's a short run. It's about 500 yards QUANTITY or so Came to a stop Lasting only about 20 seconds TIME and covering only a quarter per mile at just over 100 mph QUANTITY is a long way away from a true functioning hyperloop but as for optics it's a crucial step for the future funding. The number one CARDINAL question we got from investors are from project proponents or just people in general was like is a hyperloop safe In what better way to show something is safe than by actually getting people on it But convincing investors and governments that would likely be fronting some of the construction costs for an unproven technology there's no easy task First ORDINAL and foremost is the question of safety. Most people don't know how an airplane works but yet they get on an airplane. They get on an airplane because you know, it's faster than driving and most importantly, they've probably gotten off of one CARDINAL before they've seen someone get off of one before. And so what we set out to do was actually show that hyperlip could be safe with two CARDINAL normal people not astronauts not adrenaline junkies or test pilots or anything like that too normal people getting on a hyper lube and then most importantly this two CARDINAL people getting off. But Beyonce GPE concerns constructing hyperloops will undoubtedly require a significant capital investment to be estimated tune of around 60 1 million US dollars MONEY per kilometer of track Disco ORG to Los Angeles GPE for example is likely to come with a price tag over 10 1 billion dollars MONEY and before large governments are willing to come in and front those costs investors who are funding hyperloop development must
Is likely to come with a price tag over 10 1 billion dollars MONEY . And before large governments are willing to come in and front those costs investors who are funding hyperloop development must accept it as a long term mixture of technology and infrastructure investing. Investors that are used to short returns because you're developing apps or something to that effect, you know, those aren't the investors that really get excited about hyperloop. What you start to see is the people that are looking at platform technology, right? So, this idea that because the smartphone existed, Uber could exist. And that's the part where you're gonna get a lot more nose than yeses. Those are the people that were looking for Since we've done that passenger test there has been a lot of interest that's really oh this is a lot sooner than I thought. Envisioning the ripple effects of what hyperloop could achieve those fairly challenging at this stage of development It's fast yes but for point to point travel traditional mag live trains can move pretty fast as well. And outside of China GPE , South Korea GPE , and Japan GPE , even those haven't seen much adoption elsewhere due to the high costs and questionable profitability. The Shanghai GPE line in China GPE for example loses around 100 1 million dollars MONEY every year DATE . Hyperloop companies, however, believe they can offer something different than traditional railway lines. My name is Alan James PERSON And as far as I know I'm the only guy on the planet who's written a government level business case for KMH ORG conventional high-speed rail 500 CARDINAL co mate and 1000 CARDINAL KMH hyperloop. It's fundamentally about moving people from where they are to where they want to go when they want to make those journeys and doing it in much smaller numbers so pod designs for hyperloop range from 12 to 20 CARDINAL Seats NORP typically Why are they small It's because small enables the network to operate flexibly. I'm a great example of that. Is the east west strategic route across the north of England GPE ? From Liverpool GPE to Manchester PERSON to leads. So to get from Liverpool GPE via Manchester PERSON to By train is just short of 2 hours TIME today DATE . It'll probably take you 2 hours TIME driving as well in in average traffic condition Let result is those three CARDINAL city regions remain three CARDINAL separate entities Liverpool GPE , Manchester GPE , Leeds PERSON . There's very little commuting traffic Between those urban areas Hyperloop Changes that from the ground up. Liverpool GPE to Manchester PERSON is 5 CARDINAL or 6 minute TIME journey Manchester PERSON to leads is also a 5 or 6 minute TIME journey. What effectively does is create a single super city economy. In this vision the hyperloop acts a little more like a highway where pods have fixed destinations and don't need to stop along the way. Meaning you can travel on a hyperloop network from say Liverpool GPE to leads while the pod behind you travels from Liverpool GPE to Manchester PERSON . And if that metro FAC hyperloop network is connected to other networks from the same location you could travel from Liverpool GPE to Paris GPE or Liverpool GPE to Amsterdam GPE all without making a single stop. For passengers For business Pleasure that is utterly transformational. For high value freight and logistics it's equally transformation But critically If you do a hyperlute network at scale You begin to deliver Massive PERSON .
Transformation. Critically You do a hyperloot network at scale. You begin to deliver Massively significant carbon savings to A multi-regional hyperloop network could become a replacement for both short haul passenger and cargo flights and traditional ground transportation Of which are significant carbon producers. Hyperloop connected distribution hub Perhaps at an airport that is predominantly used for international air freight Maybe 10, 12 DATE , Distributed road hubs. It takes a lot of polluting and inefficient truck college off the roads. That itself means roads gay next to a capacity. Hyperloops will still need to use electricity to both move pods and maintain the near vacuum environment too Performance of the technology believe that this could be done by using renewable sources including a combination of solar panels and battery technology. They could be used along the hyper loop itself. But even with all multipliers of time and carbon emission savings that a hyperloop network may provide the investment capital required to actually build such a network becomes even more economically and politically Committing doesn't mean spending billions CARDINAL on day one Committing means How do we face it One CARDINAL company and the Netherlands GPE is working to develop that technology and perhaps more importantly the international coalition needed to make the hyperloop network a reality. So we are here in Europe LOC 's first ORDINAL full scale hype with this facility Or we can already prove every conceptual technology of the iPhone ORG . This is Tim Houder PERSON a co-founder and CEO of Hart Hyperloop Headquartered in the city of Delph ORG . And while this testing tube might not seem as large as others inside is key technology to create the on and off ramp type infrastructure of a hyperloop network that is a lane switch. Can already pass through your connection The trick is diversity from one track into two CARDINAL the next possible to eventually split up the iPhone ORG track in Group GPE network to travel for example over I think Europe LOC for example As you can now travel with a metro in the city The nice thing about this magnetic levitation system that we have developed is that there's absolutely oh moving components in the track. I'm so for example if you have to do a lane switch All you do is that's the two CARDINAL basically splits up And statically the tricks also split up And whenever the vehicle enters a switch it either pulls itself to the right with this Or pools itself to the left with it magnets. Lane PERSON switching on traditional rail requires the physical movement of the rail. Even modern magnetic levitation tracks use lane switching techniques in order to transfer trains from one CARDINAL track to another. Very crucial elements because this is the thing that limits the capacity In the end the usefulness of the real network. Because the moment that a track is switching that means that at that moment you are creating an unsafe environment for the trains behind it so you need a lot of space between drinks Because you have no moving components in the track. All the vehicles can be much closer to each other. You can achieve a very high frequency and basically have a vehicles moving and merging in and out of the network very much like a highway. For now though Heart's Physical Testing ORG has been limited by the size of their tube Because the test track is only 30 m long they haven't tested this lane switch at speed's greater than 20 km per hour QUANTITY however the company is working to build a new test site We're plans to increase that testing speed to 300 km per hour QUANTITY . Where we have proven most of the most important technologies in the test facilities that we already have And we have also demonstrated
Per hour. We're not gonna face where we have proven most of the most important technologies. In the test facilities And we have also demonstrated the viability and the feasibility of a network If you look at all the top systems that it consists of most of those are proven systems are very demonstrated in lap conditions so we don't really believe that the technology itself is going to be the biggest challenge Because for all hyperloop companies out there actually building a hyperloop system requires more than just a good product. We're talking about the safety aspects we're talking about integration into the environment. We're talking about social aspects. Do people feel comfortable travelling in such a system. So it's about all these different aspects And the complexity is really getting all the different stakeholders that are relevant. And that needs to contribute to bring this to market. To get them all The same rope map. In order to help build this coalition of private and public interest in hyperloop development heart in 2018 DATE partner with other hyperlip companies from Europe LOC and Canada GPE The goal was to define establishing standardize the framework to regulate hyperlip systems. Right now, we are working with all the hyperloop developers together in setting up the first let's say I structure for the for The standards drafting. Most important goals for heart is interoperability Which is essentially making sure the different systems can communicate with each other Interpretability is so important because what we want to achieve is actually have this seamless travel experience so you don't want to end up for example going from Madrid GPE to Paris GPE and then switching because you need to use a different technology to Get for example to Amsterdam GPE The idea being that as companies run Europe LOC create the first ORDINAL commercial hyperlude tracks between individual cities 1 day DATE those can all be connected to a larger network Everyone that believes that hyperloop is a future transport system also realizes that there is a need to have this network because that's where a hyperloop thrives It's such a huge project. It's definitely not something that that you can do in your own or as a single company. So, you need to do it with a lot of other companies. You need to have to governments. I think in that sense, the biggest challenge I said to you from crowded is to really get all the required parties together. To take the steps in development and in commercial implement Heart ORG 's next plan is to build the European NORP hyperloop center and open testing facility which will include a two CARDINAL . Six CARDINAL km test track and the company hopes to test travel speeds there and up to 700 kg QUANTITY Per hour. Virgin hyperloop is also racing to construct the first ORDINAL commercial hyperloop route With projects in various states of development in India GPE Saudi Arabia GPE in the United States GPE . Recently the company announced plans to build a hyperloop certification center in West Virginia GPE A six CARDINAL mi long test track. Proving the technology here will be crucial if hyperloop networks can find a home among infrastructure investments that the Biden PERSON administration hopes to make the idea there's multiple hyperloop companies I think is a redeeming aspect in the business People really want to see something happen so having multiple people move forward Is is good for that I was struck When Sarah PERSON wrote the pod Three CARDINAL of the major outlets use the phrase we now have a new mode of transport and although all of that technology had existed before those two CARDINAL human beings wrote it yeah It was the moment at which those two CARDINAL human beings
Although all of that technology had existed before those two CARDINAL human beings wrote it yeah it was the moment at which those two CARDINAL human beings traveled that short distance down the tube but in popular imagination hyperloop became a Transport. My team is that you know the right brothers refers but none of us fly on Wright Brothers Airlines ORG anymore. You're not gonna be around and so we'll continue to be at the forefront of Back in 2013 DATE Elon had an idea I think the difference now in 2021 DATE is some brilliant engineers of spent real time grinding out the details I thoroughly expect the next 3 to 5 years DATE to be decisive This week DATE how high children can transform our energy usage we'll look at why the universe's most abundant element could be a game changer in the climate revolution They are used in in other sectors. We use them in space on our rockets and we don't need the rules of physics to change to be able to use hydrogen on our planes. From iron or to green hydrogen. One CARDINAL of Australia GPE 's richest men tells us about his pivot to sustainable energy. Let's take action It's No. Hydrogen could be competitive within 5 years DATE . Headquarters in New York GPE I'm Is Bloomberg Green? It's a new year DATE so here at Bloomberg Green PERSON we're highlighting new solutions in the fight against climate change and one CARDINAL of those is as old as the universe Hidget ORG it's the simplest element around but could well
Fight against climate change and one CARDINAL of those is as old as the universe itself Hidget ORG . It's the simplest element around but could well be a game changer when it comes to turning around our dependence on fossil fuels. Today DATE , hydrogen is used in the chemicals industry to produce petroleum products. It's also starting to be used in steel production and industry under a lot of pressure to decarbonize but it has far more uses as well from power To heating our homes and Bloomberg PERSON new energy finances a seismic shift in the sector in the next 10 years DATE as green hydrogen squeezes out dirtier alternatives so called gray hydrogen dominates today DATE but as renewable electricity gets cheaper and more access So, well, green hydrogen In this week DATE 's edition of Bloomberg Green PERSON we'll explore what this push into hydrogen means for tackling climate change we'll hear from Australian NORP billionaire twiggy forest about his pivot from iron or two CARDINAL hydrogen and we'll also Speak with the CEO of Italian NORP utility company Spam about Hey ORG Facebook the hydrogen revolution But first ORDINAL what are we using hydrogen for and why Actually matter. Christine Lee Edwards PERSON explains. Hydrogen the most plentiful element in the universe. On earth we find it mostly bonded to oxygen in the form of water. Or in other gases known as hydrocarbons hydrogen gas Htwo burns hot and clean making it an attractive tool in the race to net oh but isolating hydrogen from other elements is no easy task Today DATE the cheapest way to do this is via chemical processes that break up natural gas this releases a lot of carbon dioxide another method is used electricity to split water molecules in a process called electrolysis. Although there is no carbon byproduct a lot of electricity is needed. And This power comes from burning cold or gas it negates the oh emissions goals of using hydrogen to begin with Hydrogen ORG produced in this way powered by fossil fuels is called gray hydrogen. If carbon capture is storage is used together with fossil fuels. Then it becomes blue hydrogen. If nuclear power issues, it's called pink. And finally green hydrogen is what is produced by electrolysis and powered from renewable sources. This method is considered emissions free. It's predicted that by the early 2030's Htwo made from renewables will be cheaper than that made from fossil fuels. But that hinge is on the cost of electrolysis declining which will be achieved through larger projects and an expansion of manufacturing. To be clear, vast amounts of age two DATE are already used today DATE . Global production in 2018 DATE , totaled 117 1 million metric tons QUANTITY . This hydrogen is mostly used for its chemical Hydrogen GPE properties replacing coal industries like submitting glass may also use hydrogen as a source of heat. Another advantage is it's energy storage potential. It can be stored over long It also can hold an advantage over batteries and heavy transport and shipping. The promise of hydrogen for energy has been around since at least 1874 DATE when Jules Vern PERSON wrote about it in his book The Mysterious Island WORK_OF_ART but the Hydrogen ORG will depend on policy. Countries with net oh targets. Carbon pricing and hydrogen strategies with investment mechanisms are likely to see the highest Htwo ORG demand. Hydrogen ORG needs for the energy transition but Businesses approaching the sector? Well, one of Australia GPE 's richest man is making a big play into hydrogen. Andrew Forest PERSON better known as Twiggy PERSON made his fortune from Iron Ort ORG being the chairman CEO and major shareholder in Fort Ski Metals GPE one CARDINAL of the world's biggest minors but Having made over 10 1 billion dollars MONEY in profit from the medal in the last fiscal year DATE 20 Into a clean energy company he's been Opportunities PERSON in hydrogen and renewables. The firm plants to allocate up to 10% PERCENT of its annual profits for green energy investments. And is exploring projects across the globe from Indonesia GPE to Argentina GPE .
And renewables the firm plans to allocate up to 10% PERCENT of its annual profits for green energy investments and is exploring projects across the globe from Indonesia GPE to Argentina GPE . Friends in Laqua ORG caught up with twenty CARDINAL -forest. There's only Type of clean hype and all the rest is 30 DATE . That is great. If you just say green hydrogen is clean, the rest is dirty, then you've actually nailed it and you know, anyone else who produces any other rubbers, any other item, just look in the outside. Why is global warming accelerating if anything you're saying is true And then you'll know actually it's brainwashing. Yeah but there's a lot of greenwashing because I keep on being told it's a transition. We can't just, you know, make the transition at a click of a finger. So, what are we doing wrong? What can we do better? The personal computer having to transition the typewriter. I really don't remember that. I don't remember the the smartphone having to transition the pocket calculator and the old landline. No, it's transitional is complete rubbish. The lie got booked to it. 2 days ago DATE Similar NORP reputation Fantastic track recordable. Huge balance sheets. Super strong. With those two CARDINAL companies got together and agreed at 79 1 billion US dollar MONEY agreement. Right then that's a real wake up call to say hang on Obviously commercial now Every other form of fossil fuel. Right. You know it can compete with it on price it can probably lose on price but what we know it is cooking the planet Oh methane oh cup in the supply chain don't worry about the molecules At the moment. So we have a long way to go to talk about only using green hydrogen. Yeah so look I have a call which I'd like to make now That the world should not fund Eddie PERSON . Call five CARDINAL past Projects. The planet just like gray and blue hudging it's gotten the protocol electricity is releasing 10 to 16 CARDINAL times more carbon So we've just gotta stop doing things which is self harming under the guise of Greenwash. So why are leaders so slow even if you look at the appetite for years DATE to investments? They're growing exponentially. So our emissions. So where are we allocating capital? Okay so take the recent 220 DATE . There's probably a reason why there wasn't strong action coming out of the G 20 Because people were not aware that major transactions between large We're taking place now That actually this pollution free all the way to the supply chain fuel is now being transacted at multi one 1 billion dollars MONEY scale Climate change minister could not take ultra seriously then green heighten is doing here to stay it's broken through It will never go back. Okay, what is the one thing that you would tell leaders today DATE and business leaders? How do we transition Faster PERSON than what we are now because we're at real risk of missing our targets. Oh, so that's really simple. You stop Funding you stop subsidizing you stop Using. Hey Because we haven't had that Haven't had that green harsh. Yup. Now we know let's take action It's implementable next to it now. Okay, if we do it now, is there going to be a shock to the energies system? Is there going to be a shock actually to economically and is it worth, you know, not talking about transit?
If we do it now is there going to be a shock to the energy system is there going to be a shock actually to economically and is it worth you know not talking about transition just going from eight CARDINAL to B. Yeah it's a it's a fantastic person. A to B's the solution. Let fossil fuels do what possible fuels do. Just burn their cold, burn their Into the atmosphere Honestly. Yeah. But at least the carpet has been done honestly. Encourage the Green Heights GPE sector to come in really fast okay it's there there's there's renewable power all over the world you know know how to make a lectures much cheaper like 20 Does it need to be cheaper than oil and fossil fuel for it to be viable worldwide? Well, right now is okay so let's just swallow that bit of financial data. Right now is cheaper And it's getting more cheap it's it's I feel you know You don't have enough of it. Right, to power the world. That that's only because We haven't had policies to support We had policies to support it. 510 years, ago DATE , it would be everywhere you'd see the global warming budget start to come down. Yeah. Now, we've got 5 or 10 years DATE to make a huge difference. And he post latest all over the world. One 1 billion dollars MONEY payments. Coming Hydrogen revolution will speak with the CEO of Italian NORP utility firm snam about his new book and why he thinks green hydrogen will be competitive in just 5 years DATE Plus, how are airlines working to become more sustainable? We'll look at how airbus ORG plants to step up in the climate fight. Hey Facebook read. From Woonberg GPE 's World headquarters in New York GPE I'm Kelly Lyons PERSON and this is Lumber Green PRODUCT What will the world look like in 2050 DATE ? Will global temperatures have stabilized electric vehicles be abundant.
The New York GPE I'm Kaylee Lyons PERSON and this is Bloomberg Green PERSON What will the world look like in 2050 DATE ? Will global temperatures have stabilized electric vehicles be abundant and solar and wind power homes around the world? According to Marco Alvera PERSON , the CEO of Italian Energy Company ORG , Snam GPE , that The future could be your reality and he says that hydrogen will pay its way. As he tells it in his new book, The Hydrogen Revolution WORK_OF_ART , Alvarez PERSON moment of reckoning came in November 2018 DATE when he tasked the snap scenarios team was studying how Europe LOC could reduce its COtwo ORG emissions to oh 2050 DATE . Looking through the results of the study, Alvera ORG said he was struck by how much hydrogen was in Europe LOC 's energy mixed by that year DATE . Beyond the abundance of hydrogen, the stand model also predicted that it would be the cheapest form of decarbonized energy for many sectors and that it could be cheaper than today DATE 's prices for oil coal and nuclear power. Our Maria PERSON today Spoke with Alvara GPE at Cop 26 CARDINAL . Hydrogen ORG coming down a lot. Hydrogen ORG will play a big role in the energy mix. I don't know if it's gonna be 15 or 25% PERCENT of the fully decarbonized energy system but it's gonna be big. Call sir coming down and people are waking up to the fact that it's the only way to decarbonize certain sectors. So called hard to abate Still not the cheap Hydrogen 2004 EVENT it was costing a $ 1000 MONEY per mega of an hour 2016 DATE 100 today DATE 100 CARDINAL we see it going down to 50 CARDINAL Hydrogen Hydrogen ORG the cost of this kit is falling a lot because it doesn't Institution Infrastructure ORG . Are they are they keen on this? They're very keen so the department of energy shares our view in the states of getting to below $one a kilo which is $ 25 MONEY a mega per hour. The European Union ORG has a hydrogen strategy which is very clear and several member states have the same. Chili ORG wants to explore a lot of hydrogen China GPE 's big on hydrogen Australia GPE is very big on hydrogen. Japan GPE is blending already hydrogen. So, I would say the world is now really focused on this because it's the only way to store energy for a long period of time. Economically is to convert it into either a liquid or a gas. Hydrogen ORG eventually and so compared to oil and gas which are concentrated in few parts of the world. It's gonna be very democratic from that point of view. So, every sunny place, every desert, every ocean wind, can be turned into hydrogen that we can put on ships in pipes Faster PERSON than a lot of people think. So and and we say a lot faster. As they said $ 50 MONEY which is essentially oil parity within 5 years DATE and then depending on how quickly we ramp it up after that we could get to $ 25 MONEY which is cold parity before the end of the day DATE . Hydrogen ORG development, a lot of renewable development in both countries. The Indian NORP announcement was incredibly On 23rd DATE . Right? Hydrogen GPE . Perhaps the fact that we haven't really seen them act if I guess the diplomats are working on
And we're very interested in working that country. And with regards to China GPE , perhaps the fact that we haven't really seen them active. I guess the diplomats are working on this but we haven't really seen the leadership. So I think a lot has been achieved between the G 20 and and Cop PERSON and I think what's really important is to see in the coming years DATE how quick it's in our hands to make part of this happen in 5 years or it could otherwise happen in 15 Already committed what's missing is really the projects and that's where companies like us step in. Marco Alvera PERSON , CEO of Snam GPE there, speaking with our Maria PERSON today DATE . Let's turn out to the aviation industry. It's Contributor to global greenhouse gas emissions and it Pressure to change that. In October DATE , the International Air Transport Association ORG , a tree body representing Approved a target of achieving net oh missions by 2050 DATE to achieve that many airlines in the US GPE and Europe LOC are looking to buy sustainable aviation fuel made from renewable sources like used vegetable oil Initiatives NORP like these are pushing play makers to come up with some radical new aircraft that will eventually cater to our growing For travel without hurting the environment. We took a look at how airbus ORG the world's number two CARDINAL aircraft manufacturer is stepping up to the challenge. How long until we can fly emission free Airbus ORG says it's more confident by the day DATE it can be done by its 2035 DATE target The physic works hide organ technology are not new they are used in in other sectors we use them in space on our rockets and we don't need the rules of physics to change to be able to use hydrogen on our planes so everyday we become more confident but we think we need to have a plan we need to have the the right At the right time and we need your regulations to be ready. So, we really need the the work and the collaboration of many people on the globe to make it happen on time. Large aircraft with more than 150 CARDINAL seats on not expected to feature globally until about 2050 DATE that means manufacturers and airlines today DATE are undergrow In a long term meeting the ambitious plans for so called green hydrogen means building a giant industry almost from scratch to make that happen British NORP airline easy jet to Those saying governments need to get involved and fast. Aviations emissions over the last three decades DATE leading up to the pandemic grew by about 80% PERCENT to over one CARDINAL gigaton and that's projected to double by 2050 DATE . Bloomberg NEF PERSON about half of the airlines with the largest global market share have set oh targets by that same date nearly three decades DATE away Coming up from blue sky projects to the bottom line we'll speak with our Bloomberg PERSON any F expert Meredith ORG annex and dig into their models Hydrogen GPE fits into the future energy mix. Is Bloomberg Green PERSON ?
From Bloomberg PERSON 's world headquarters in New York GPE I'm KB Lyons PERSON and this is Bloomberg Green PERSON now let's bring in Meredith ORG Annex our Bloomberg NEF ORG hydrogen specialist to talk About how hydrogen could change the energy landscape. So where did What place do you think hydrogen is likely to have in the future energy mix globally? Hydrogen this incredible solution for us as we look to decarbonize because it's a perfect solution in areas that are hard to electrify. So, where we like to think about hydrogen playing a role, it's in things like heavy industry, especially where you need a feed stalk as well as energy source and in things like dispatchable power, long call transport Maybe even shipping an aviation. That sounds great that it can be used for such diverse industries. At the end of the day DATE though, how much Is going to cost? Well, that's the amazing thing about hydrogen because depending on how you make it, it can actually see significant cost declines in the So when we're talking about clean hydrogen we're usually mean green hydrogen produce from renewable electricity. And in that case your hydro Is almost as cheap as the renewables that I used to bake it So, if you're in a place with really good renewable resources, you'll be able to have cheaper hydrogen but even in places with less good resources, we think that hydrogen can be cheaper than a dollar per kilogram. Which is the price of unabated hydrogen today DATE and around $eight MONEY per one 1 million QUANTITY BTUs for those who prefer to think in energy units And that can be teach anywhere in the world by 2015 DATE we believe. Alright, so let's talk about kind of the pros and cons list. I don't know where cost fits into that but what are the advantages to hydrogen over other renewables and then what are the drawbacks? Yeah main advantage is the fact that hydrogen can serve rolls that electron struggle with and that's things like seasonal storage brands in so just anything where you need to store ability very left tons are harder to store hydrogen is gonna be easier. That also leads to a downside though because hydrogen is less energy dense than the usual things that we use for storeable energy today like coal or oil or natural gas. So, you only more volume of storage to handle the same amount of energy Let's talk about the viability as well and how it may differ in different geographies. What is your view on that? Yeah. So, for green hydrogen again from renewable electricity, Places with the best renewable resources things like Latin America LOC or the Middle East LOC even Southern Europe LOC have really really good potential for producing hydrogen and then when you're looking at blue hydrogen which is produced from natural gas or coal with carbon caption storage. We do see that becoming more expensive than green hyd In the future. Renewable electricity cost come down Can be available option in places like the US GPE Gulf Coast LOC or Russia GPE where you've got good geological storage for the carbon as well as ample natural gas that's quite cheap. Alright, great breakdown. Thank you so much to our Meredith Annex PERSON . Our Bloomberg PERSON , NEF ORG , hydrogen specialist, and of course, you can get more from the Bloomberg NEF ORG team on the terminal and And they've recently done a podcast called hydrogen 101.
Bloomberg NEF PERSON hydrogen specialist and of course you can get more from the Bloomberg NEF ORG team on the terminal and online and they've recently done a podcast called hydrogen 101 as part of its switched on series. So from Iron Nord Titans PERSON pivoting to cleaner energy to talk of a hydrogen revolution that's it from this week DATE 's edition of Bloomberg Green PERSON we'll be back next week DATE with a deep dive into the state of electric vehicles And you can keep the conversation going by following us on YouTube ORG , Instagram ORG , and Twitter Climate PERSON . World headquarters in New York GPE and this is Bloomberg Green PERSON . Bloomberg PERSON It's now 2 PM TIME on Wall St we've got markets trading mixed at this hour TIME from Bloomberg World ORG headquarters in New York GPE I'm Doug Crisner PERSON earlier today TIME some week DATE economic data sparked to bait over whether or not fit share Jay Powell PERSON might deliver a last hawkish message when he speaks on Friday DATE sales of Us GPE homes down in July DATE for a sixth ORDINAL time this year DATE and US GPE business activity contracted for a second straight month DATE during August DATE Well now it looks as though markets appear to be coming to terms with the idea that the fed ORG is resolved to fight inflation with higher interest rates we are learning now from the Bloomberg PERSON terminal that directors at two CARDINAL regional fed ORG banks Saint Louis GPE and Minneapolis GPE were seeking a rate hike last month DATE of 100 CARDINAL basis points and Long term rates are moving up 10 year DATE treasury ORG higher by three CARDINAL basis points in yield we're 304% PERCENT . Very little movement on the shorter end of the curve at this moment with a 2 year DATE at 303% PERCENT . The dollar remains week DATE with the Bloomberg PERSON dollar spot index right now off about a half CARDINAL of one% ORG the equity market is mixed down industrial average weaker by a half CARDINAL of one% ORG but the Nasdaq composite holding onto a gain of a 10th ORDINAL of one% ORG in the broader market we S and P 500 CARDINAL index down about two tenths CARDINAL of one% ORG to decline being past by real estate health care and utility stocks Earlier in the day TIME Macy ORG 's cut its full year DATE forecast for both profit and revenue the retailer blaming steep markdowns and bloated inventories even so shares in Macy ORG 's right now trading higher by more Three and a half percent DATE UBS ORG was saying the bad news may have already been priced in before today DATE shares in Macy ORG 's were down 29% PERCENT so far this year DATE and zoom video shares right now being hard hit off by more than 14% PERCENT late yesterday DATE after the closing bell zoom cut it's annual Forecast. Crude oil.
A hard hit off by more than 14% PERCENT late yesterday DATE after the closing bell zoom cut it's annual DATE revenue forecast WTI crude oil right now with a gain of three CARDINAL . Eight% That's your Bloomberg GPE business flash. This is Bloomberg Business Week ORG inside from the reporters and editors who bring you America GPE 's most trusted business magazine plus global business finance and tech news as it happens. Bloomberg PERSON business week with Carol Messenger PERSON and Bloomberg GPE Quicktakes Tim Stenovic PERSON on Bloomberg Radio Studio ORG we are streaming on YouTube ORG on this Tuesday DATE August DATE 23 CARDINAL Carolmaster my host In for Tim PERSON and with me for the next 3 hours TIME Bloomberg News ORG senior markets reporter Katie Greifeld PERSON she is host of ETFIQ ORG on Bloomberg TV ORG It seems like a market that maybe is taking a bit of a breather but we did have a bunch of weak economic news global economic news and that's definitely shaping the global trade. Volumes falling off a cliff. The big event of course is at the end of the week DATE . Jackson Hall PERSON , folks. Alright, with that in mind, hang on, everyone. The era of economic whiplash may just be I thought we were living through that at this moment wasn't this the year DATE of volatility? Knew who knew we're also gonna talk about Harvard ORG maybe about to lose its status as the wealthiest school. Tiniest violin for Harbor ORG . I was gonna talk about the common denominator between a well-known health care organization event or capitalist in NBA Talk ORG about that combination and then let's not forget we've got earnings from into it Nordstrom and Toll Brothers after the close so lots to get to on this Tuesday DATE let's get to the market driver's report Let's set your business week agenda on this Tuesday DATE . Markets correspondent at Bloomberg PERSON are interactive brokers studio. So to as Molly Smith PERSON , economic editor, at Bloomberg News ORG , but first ORDINAL off, let's talk about the market trait cuz it does seem like we're maybe marking a little bit of time waiting for Jackson Hole GPE . Yeah, no real conviction, I would The market here the S and P 500 down about 2 tons QUANTITY one% the Nasdaq ORG about flat on the session even in the yield space I would say there is some intra day volatility you are seeing swings of as much as 10 CARDINAL basis points on inter day EVENT basis but we're still hovering around three% 304 really yeah And bespoke and best actually I try not to really quote research here but bespoke and best came out with a really good note a couple days ago DATE saying that every time the 10 year old DATE hits three% you do start to see some selling in the stock market and it almost feels like Right so it feels like at least today perhaps it is like taking it's queue the stock market is taking it's cute from the cross asset picture and of course we do know the Bloomberg PERSON dollar index is also weaker Session PRODUCT . So, really, I mean, I hate to say this, Matt Miller PERSON gets mad at me every time I do but like, nothing's really happening in the market. It's really mad. No, what is it? Terminal Me that there were two CARDINAL members of the federal reserves regional bank branches that said, you know what? We would really like to see a full percent hike. Right. So, this is again to be clear for the discount rate, not for the federal funds rate, which the fed ORG just raised by 75 CARDINAL basis points So what is the discount rate? Is essentially when banks borrow directly from the fed ORG . So, that's a different than the federal funds rate and that one had unanimous support to be raised by 75 CARDINAL basis points at the last meeting. So, this Still important. There is still signaling in here that like fede officials are still Literally moving toward tighter financial conditions and still sending that message across that rates and borrowing cost more broadly do need to be moving higher. So, it is still significant. Meaning, no pivot, Katie PERSON . No. Speaking at 10 AM Eastern TIME on Friday DATE there was a really interesting interview on Bloomberg TV ORG earlier today DATE with Yon Hotsias PERSON the Goldman Sax Chief Economist he said that Pal he's not about to go all local Volker NORP reminding us that again there's a risk of over Monetary policy obviously works with the lag but when you look at some of the data out today DATE and think about the week PMIs I'm thinking about the new home sales are we starting to see some of that time
The new home sales are we starting to see some of that tightening arty in the system work its way into the data yeah and I think Powell PERSON and Co PERSON will be definitely take comfort in that and they've definitely mentioned the housing slowdown Sign that their policies are working which is what they want to see the thing that though that they can't take as much credit for of course when you look at the overall CPI numbers from July DATE and so much of that being due to energy prices coming down That's not really so much of in the feds control and that's not showing that inflation broadly is softening so it's still high shelter cost I hear people complaining still about what they're paying for food I mean they're still a lot of pressures out there exactly and they think that is Very much ingrained to them that they still need to keep moving higher and tighter and again not moving toward that pivot anytime soon. Is there like any kind of I don't know whispering among traitors or investors out there in terms of what we get from J Powell PERSON and company J Pal ORG specifically on Friday DATE and how that could impact the trade. We've had quite a bounce off the We have and you know, I think there's two CARDINAL major expectations. He has to basically come out extremely hawkish, approved to the market, that he is actually looking and actually the federal reserve, not him, so specifically, but the federal reserve is looking to tackle inflation, pretty aggressively. The risks that they run and this is a very, very high risk. Is that anything below? And this You saw the trade for the July DATE meeting is that anything that wasn't we will Potentially tackle inflation at the risk of recession. That's extremely hawkish comic he made in June DATE . Anything that falls short of that is going to be interpre So the stakes are extremely high in terms of language here if I can actually circle back very quickly to the discount rate that Molly was mentioning I would argue that this is really interesting timing because the discount typically set higher than the federal funds rate it's meant to be kind of this extra check on on the bank signature liquidity and things like that so if you see the regional Federal funds rate as well because that margin has to still stay about the same between the discount and federal funds rate. That's a lot of nerd talk basically for saying that away for chairman Powell PERSON to Actually on the table for September DATE at a time when the market is pricing 50 DATE . Save to 30 CARDINAL . Well, right now, I mean, right now, the debate is really between 50 and 75 for September DATE . Of course, that is still like I would say for very up in the air and Between now and September DATE and what is our It's time to Somebody's gonna be right that's all I'm gonna say alright we're gonna leave it on that note guys thank you so much great to have you both here in studio create a group markets correspondent at Bloomberg PERSON and of course our Molly Smith economic editor at Bloomberg News ORG both as we said in our interactive broker studio lots to come with Katie PERSON and myself right now that we wanna An update on World of National News ORG for that Nancy Lyons PERSON in DC GPE . Hey Nats PERSON . Thanks Carol PRODUCT . Two CARDINAL men face life in prison after being convicted of conspiracy to kidnap michigan governor Gretchen Whitmer PERSON . The verdict came after Jerus heard more than a DATE week DATE 's worth of testimony in the case against Adam Fox PERSON and Barry Croft PERSON . F Assistant special agent in charge David Porter PERSON said the men planned to take their political disagreements to a dangerous level However FBI ORG 's Porter PERSON both men plan to appeal today DATE 's verdict. Twitter PERSON 's former head of security has filed a complaint with the US GPE government claiming severe shortcomings and how Twitter PERSON handles user data. The formal complaint alleged egregious deficiencies in Twitter ORG 's defenses against tackers and other lacks approaches to security the washington GPE post first reported the claims which include out of date software prioritizing growth over reducing the number of spam accounts Executives with holding information about breaches how's lawmakers confirm the complaint
Food out of date software prioritizing growth over reducing the number of spam accounts and executives with holding information about breaches how's lawmakers The complaint saying they're already reviewing the disclosure and they're looking into what to do next in washington GPE i'm in Morris Bloomberg PERSON radio the White House ORG plans to make its long awaited announcement Student ORG debt relief tomorrow DATE . That's according to people familiar with the timing. The substance of the announcement is not yet clear and is being closely guarded by the White House ORG . President Joe Biden PERSON 's decision has Long anticipated as he grapples with delivering targeted relief while weighing any fallout including an on already rampant inflation. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalist and analyst in more than 120 CARDINAL countries I'm Nancy Lyons PERSON Nancy Lyons, thank you so much. They're in our 99 one CARDINAL newsroom in Washington GPE , DC GPE . Alright ORG , the most red story on the Bloomberg PERSON in the past 8 hours TIME on this Tuesday DATE has to do with Julian Robertson PERSON very well known of course to members Bloomberg PERSON here and of course our Bloomberg PERSON audiences he was the billionaire tiger management founder he became one of his generation's most successful hedge fund managers a mentor to waive investors known as tiger cubs we often talk about it we report on them and what they are doing how they were performing Fascinating LOC career so born in North Carolina GPE he started New York GPE based tiger management in 1980 DATE with about $eight MONEY . 8 million CARDINAL he was 48 years old DATE at the time so not exactly A young relatively old to be launching his own firm 1998 DATE Assets had sort to about 22 1 billion dollars MONEY on the back of annual DATE returns averaging 32% PERCENT Carol. Yeah, that's a pretty decent return. Yeah, I wouldn't say no. I love this. Jim Shay PERSON knows in an interview for more money than god, that was a 2010 DATE book on hedge funds by Sebastian Malaby PERSON said and this is a quote from Jim Chanos PERSON . If Had had to give my own money to any of them I would have given it to Robertson PERSON I knew that he knew stocks better than anyone I mean this was someone who was really a stock picker oh yeah definitely and I mean he was known for really managing his holding Aggressively he would remove good companies to make room for better ones and he wouldn't risk more than five% of capital on a single bed and kept the faith through the bad times and to your point again really known as a stockpicker though he Four CARDINAL X in the 1990 DATE 's. Section in this story on the Bloom Bargain@Bloomberg PRODUCT . Com. Called manic periods and this was a quote from him. He wrote in a letter to investors. I'm not quite sure exactly when maybe this was, I don't know. But he said there's Point in subjecting our investors to risk in a market which I frankly do not understand this was a letter to investors we have seen manic periods like this before and I made confident that despite the current disfavor in which it is held value investing remains the best courses might have been back In 2000 DATE I'm not quite sure about the timing. Anyways read the whole story. You can find it on the Bloomberg PERSON and also@Bloomberg PERSON . Com. This is Bloomberg Radio ORG . Hey
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com, the Bloomberg GPE business app. Markets appear to be coming to terms with the idea that the feds resolve to fight inflation will continue with higher interest rates we are learning now through the Bloomberg PERSON terminal that directors at two CARDINAL regional Wanted a rate hike last month DATE of 100 CARDINAL basis points 10 year DATE treasury ORG is up more than two CARDINAL basis points in yield now at 304% PERCENT . We're down a basis point on the 2 year DATE at 329 CARDINAL Equity market we've got the dial weaker by a half CARDINAL of one% ORG of the Nasdaq composite rising two CARDINAL tenths of one% ORG yes and p 500 CARDINAL is down two CARDINAL chance of one% ORG that is your Bloomberg GPE business flash Kick PERSON off to the clothes Bloomberg PERSON 's comprehensive cross platform coverage bringing you inside on what to watch ahead of the US GPE market close starts right now And a very good afternoon TIME everybody welcome to the kick off to the close Carol Master PERSON and Katie Griffel PERSON choose in for my co host Tim Steda PERSON On this Tuesday DATE we welcome our TV colleagues Carolyn High Taylor Riggs PERSON and Gina Martin Adams PERSON as we walk you towards the closing bell on this Tuesday DATE and let's take things off with a look at today DATE 's trade cuz we're for the most parts in bouncing Unfed NORP policy due later this week DATE from Jackson Hull ORG . We did see that tenure that were back above three%. There you have it for folks on TV. Right now, the S and P little change. Call it flat slightly lower. Same thing for we're taking a look at actually the Nas Small caps do have about a quarter of a percent down also down but overall,
Same thing for we're taking a look actually the Nasdaq. It's a little bit higher up about 2 tons QUANTITY of a percent. Small caps two CARDINAL up about a quarter CARDINAL of a percent down also down but overall Katie PERSON , pretty flat here. Pretty flat, yeah, not much to speak of in terms of volumes either And I'm gonna pick it up as well from here to talk about through the mix equity market on the day send them mixed volumes on the day DATE how much of this really comes from some of the key data of course that we're watching Economic data that really sets the tone maybe around 8:30 TIME : sometimes 10 AM I'm gonna start with some of the key PMI ORG data that we got this morning TIME . Gina for me, it's a composite that falls to 45 CARDINAL . The weakest since May 2020 DATE before that, the week DATE is since 2009 DATE . Our services that falls to 44 CARDINAL . I mean, any It's still quote above the construction territory sold and expansion but it's also too probably over. Yeah and increasingly difficult to argue that the US GPE economy is not entering or already in recession with this kind of data coming out not only the PMIs but certainly the consumer starting to show some weakness that showing up there in those services PMI ORG 's and the housing dedicated also has been pretty ugly so far today DATE . In July DATE since early 2016 DATE the other part of that was the homes For sale rose the highest level since about 2008 DATE so again just this long lag of monetary policy tightening maybe it's starting to show just in some of the data we got just this morning I wonder though what you make of a median home price that's still up 8 year% of year DATE in that report is still $440 thousand MONEY so you are seeing a little Slow ORG down but Caroline NORP when you think about some of the price pressures and the massive gains that we're still seeing on year over year DATE basis in terms of those medium home prices those aren't falling yet yeah interestingly how does that affect consumer sent Doesn't mean that you withdraw and you're spending once more. I got a real good check in on the health of the consumer from the CEO chairman of Macy ORG 's a little bit He actually was saying look the consumers relatively healthy right now Pricingly healthy but also get this by the inventory level which was seven% higher than this time last year DATE but overall Jeff PERSON and I were saying look there's an industry issue not not a Macy ORG 's issue particularly I've got some categories where there's a lot of inventory look he's talking about the things we're all buying in the pandemic your athleisure and the like we said other I've got catering is that a flying right now for him particularly the luxury consumer Katie PERSON still Wrong. And you wonder what those inventory levels I know it's only August but the holidays are approaching. Where do those levels leave us as we approach really really crucial season for those retailers? Tour and because I feel like we guys just talked about a lot of week economic points what we did talk about still shelter cost pretty high and you had the Macy ORG CEO talking about the consumer relatively strong well as a one CARDINAL person on TV earlier weighing in torston slock he's a palo management chief economist he really focused on the global weakness and the implications of such here's what To say. Most particularly surprising is that the service sector which has been holding up not only the US GPE economy but also the European NORP economy we're showing a little bit more sign of weakness and combining that also with a housing data being a little bit weaker eh it is clear that there are some signs at least now in the services sector that things are slowing housing has been slowing for a while but the It looks like rate heights combine of course with the situation in Europe LOC on any of your front beginning to have at least someone of the moderating impact on Bruce Alright Torston's PERSON lock of course Chief economist. So, moderating growth Caroline NORP but I didn't hear him say recession. At all mean for how we get the nuance from Whether or not that pivot stays intact whether people got ahead of the curve over thinking it was a pivot whether or not we still see some hawkish signs from the fed. Yeah and will that pivot really be justified? It's the big question. We've got a yet A retailer coming out this afternoon TIME . Just when you think that earning season is over, there's still more coming in Nordstrom ORG 's coming out this afternoon TIME . Macy ORG 's kinda PERSON set him up a little bit. Certainly, the stock has gotten a little bit of lift from the Macy ORG 's news. Will Norstrom be able to satisfy expectations for maybe things weren't quite as bad as we were worried about for the second ORDINAL .
A little bit certainly the stock has gotten a little bit a lift from the Macy ORG 's news Be able to satisfy expectations from maybe things weren't quite as bad as we were worried about for the second quarter DATE will they be able to manage those inventories and give us some insights into just how much the Is turning over because frankly it's gonna take a big turnover in the consumer to justify that sort of easier fed ORG outlook that the market is anticipating for 2023 DATE . Stout and done in thinking I think she was online shopping Retail consumer really hanging in this entire time it will be Dynamic we need to get used to not sharing any secrets All I know is I have a bunch of back to school shopping to do so I'll be out there. Alright, that's gonna do it. We'll be back in about a half an hour TIME 's time for countdown to the close and do not miss From coverage as we count you down the clothes on this Tuesday DATE beyond the bell on radio TV and YouTube ORG will count you down You're listening to Bloomberg GPE business week with Carol Messer PERSON and Bloomberg PERSON quick takes Tim Stenovan PERSON On Bloomberg PERSON radio. Alright you are listening and watching Bloomberg Business Week ORG on Bloomberg Radio ORG and on YouTube ORG Carolmaster Law with Katie Grifield PERSON I mean Did PERSON n't know to check out my hair. Don't tell my bosses. But occasionally, occasionally, and I was just wondering I really love when you have one close competitor report and then the competitor reports in the afternoon TIME . So much good news. Can they deliver? And not all retailer like that's all I will say and I think that's why you see some contrast whether high and lower and consumer I hate to say lowering consumer I don't mean it like that it's kinda
Broadcasting live from the Bloomberg NORP interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the country series XM PERSON channel 119 CARDINAL and around the globe the Bloomberg GPE business Iheartradio GPE . Com. Violin for Said PERSON earlier you don't have one. Maybe this is the other side of it. Yeah, we'll get to that in just a moment TIME with our own Janet Lauren PERSON . First ORDINAL up, go back to the markets, your top business stories, here is Doug Krisner PERSON . Hey, Carol PERSON . So, mark it, I think it's fair to say today DATE are coming to terms with the fact that the fed ORG is going to be resolved to fight inflation Or what? Higher interest rates are in store. We're learning now through the Bloomberg Terminal ORG that directors at two CARDINAL regional fed ORG banks this would be Saint Louis GPE and Minneapolis GPE they wanted a rate hike last month DATE of 100 CARDINAL basis point.
Now through the Bloomberg Terminal ORG that directors at two CARDINAL regional fedbanks this would be Saint Louis GPE and Minneapolis GPE they wanted a rate high class month of 100 CARDINAL basis points we're looking right now at a 10 year DATE treasury 305% PERCENT . Where up nearly four CARDINAL basis points on the day DATE at the shorter end of the curve the two CARDINAL Very little change to Neil PERSON at 331 CARDINAL in the equity market we've got a mixed picture the Dow down about four tenths CARDINAL of one% Nasdaq comp though higher by about three CARDINAL tenths of one% ORG and in the broader market we've got the S and P showing just a little bit of weakness off less than a 10th CARDINAL of one% ORG real estate health care utilities leading the way lower but we must The energy group the S and P 500 CARDINAL energy group is up by more than three% moving higher in tandem ORG with crude oil WTI right now 9378 DATE we're up about that three CARDINAL . Eight% the market here seems to be sensing the risk of output cuts coming from Opec Plus given the gap that we've been talking about between high prices in the physical market and weaker futures prices Saudi Arabia's GPE oil minister recently raising the possibility Of production cuts is a way of rebalancing the market I'm done prisoner that your Bloomberg PERSON business fly alright got it Doug PERSON thank you so much well the Bloomberg Big Take FAC also among our most read on the Bloomberg PERSON today DATE it's about how Harvard ORG 's long time status is the wealthiest school is now facing an oil rich contender Katie PERSON In oil rich contender and none other than the university of Texas ORG I don't know if you've heard but energy prices have just been soaring this year DATE this is a really interesting angle into it sort of from the endowment perspective Janet Lauren PERSON wrote the story she The studio with us. Janet PERSON . Walk us through why this has been such a boon for the University of Texas ORG in particular. Well, I'm gonna take you back to the 1800 DATE 's. Okay, when the state of Texas GPE began setting aside land for a public university system. Forward the land ended up being in West Texas LOC where they said perhaps you can get some money from grazing rights and then what happened 100 years ago DATE Oil PRODUCT struck permean basin today DATE is the largest oil producing region in North America LOC and given you know what's been going on with oil prices, the war, and also a different strategy over the last several Run by university lands which is a division of the University of Texas ORG system that increase production and higher oil prices add up those two CARDINAL things and you get more than two 1 billion dollars in revenue now what's really key about that is it goes into the endowment As we talked about many endowments are expected to have investment losses for the year DATE that ended in June DATE so that gives these endowments this endowment some real liquidity when others are facing losses they that really helps them you know build their endowment if they're able to you know chase You know, Chase ORG managers, good good deals in a in a down market. Can I just, the first ORDINAL line of your story every day DATE , the University of Texas ORG system makes about six 1 million dollars MONEY off a mineral ritual swath of land. It manages in the US GPE 's largest oil field. That's pretty nice. Yeah, well, two CARDINAL . 1 billion acres. Yeah. In the Permian Basin LOC . So compare that then now with Harvard ORG right that was the headline on the story. Is about nine 1 billion dollars MONEY and given, you know, this year DATE , many schools are gonna have losses. If they have it a down, a decline in their value, Texas GPE may have an increase in their value. Plus, if they're able to, you know, get those, get, get some great investments, plus, you know, the reserves on their land are, you know, the size of Publicly traded companies We're not even talking about wind and solar Which is you know they have great positions for wind and so or so cuz of all that land right Weird. It's located. Comparing contrast what we're seeing and how other universities are managing their endowments because you write at this time you see a lot of other universities pulling back from energies sort of in an eco-conscious push. Absolutely. Harvard ORG announced last year DATE that they were moving away from fossil fuel investment so they're letting things rolling off and they're not making any new investments and a lot of schools are saying they're doing the same thing but of course, as you know, private equity, How does it change?
Long term investment so you're not just gonna yank out of a fund if you're in year 2 DATE out of 10 CARDINAL Energy as you know it was a great investment this year DATE How does it change? I mean, it right, exactly, by a mile. If you look at the major, 11 CARDINAL major industry groups in the S and P 500 CARDINAL energy, I think 43% PERCENT . It's nuts. It's nuts. Easily beating all of the other 10 CARDINAL . If you will, Put pressure on the others to maybe slow their roll if you will in terms of not being so environmentally conscious like I do wonder at some point right does someone we talk about this generally in the SG PERSON great when the market's going up overall with everything but when it's not how many people are like yeah maybe I don't have to be so Really good question. These are not investments they're making. They're not buying into funds. This is just land that they control when they get the money. And it's just cash coming in. So it's not like they're gonna go sell it. Why? Well in their hedges actually we didn't solar yeah plus there's there's new new things in the climate the climate bill so if you are a private company and you're looking for tax credits you know for carbon sequestration if you're injecting carbon into a well There's another revenue stream so that's really interesting that they're they can kinda play love sides that okay we have these Fields that were generating a lot of you know cash from as energy prices and oil prices skyrocket but again to your point they also the wind and solar so again it's really a neat balance there. How much of that hedge? How much of Anybody who's in the oil industry will say we're a boomin bust industry. I mean, is this just a really great year for them? It is a really Year DATE but as we explain in the story oil doesn't have to be at 100 CARDINAL Barrel PERSON to make money because you know they get 22 CARDINAL . Three% GPE royalties and they're not putting any capital expenses into drilling they just sign the leathers and get the money right so they don't have to they actually cost and stuff they just miss out the land yep they just have the land I really fascinating story and as we said Among the most red and really is so I feel like reflective of our environment today DATE and and really the move up when it comes to energy. Janet PERSON , thank you so much. It's also the Bloomberg Big Take, the reporting by Janet Lawrence PERSON . She's a higher education finance reporter at Bloomberg News ORG here in our studio. Check out all of her stories on the Bloomberg@Bloomberg PERSON . Com and also on Twitter PERSON at Janet Lauren PERSON , I think about just those macro trends that impact so much. And it really just speaks to this very interesting moment in ESG whereas if you've been sitting in an ESG fund you've missed out on that big energy boom. Obviously endowments are feeling that as well. No really really good point. Carol Master PERSON Katie Grifield PERSON you are listening and watching Bloomberg PERSON business week right now back to DC GPE Hey Nancy Lyons for Walton National News ORG hey Nats hey Carol the US GPE is warning Americans NORP to leave Ukraine GPE over fierce Russia GPE could launch a new round of a tax against Ukrainian NORP government facilities Ukraine GPE is preparing to celebrate it's independent state tomorrow DATE President Velon Amir Solinski PERSON says Russia GPE quote Try to do something particularly nasty Former President Donald Trump PERSON has filed a federal lawsuit seeking appointment of a neutral third ORDINAL party to review material that was seized by the FBI ORG during a search for classified document At his mar a lago estate Bloomberg PERSON Washington GPE correspondent Joe Matthew PERSON with more the legal analyst we're speaking with say this may not go very far the DOJ is likely already begun going through these documents and they have a special team of filter team or a taint team as they're known Trajectory of this case. Bloomberg PERSON 's Joe Matthew PERSON says no response so far from the justice department ORG . Tennessee GPE 's former Republican NORP Speaker Glen Casada PERSON and his top aid have been arrested on federal charges including bribery kickbacks and conspiracy to commit money laundering with federal funds the 20 CARDINAL count indictment alleges the man created a mailer company and a fake persona to receive state A jury has convicted two CARDINAL men of conspiring to kidnap michigan governor Gretchen Whitmer PERSON in 2020 DATE and a plot that prosecutors describe as a rallying cry for a US GPE
A jury has convicted two CARDINAL men of conspiring to kidnap michigan governor Gretchen Whitmer PERSON in 2020 DATE in a plot that prosecutors described as a rallying cry for a US Civil War by anti government extremists it was Second ORDINAL trial for Adam Fox PERSON in Barry GPE Croft Jr after a jury in April DATE could not reach a unanimous verdict Global news 24 hours TIME a day on air and on Bloomberg Quicktake PERSON powered by more than 2700 CARDINAL journalist and analyst to more than 120 CARDINAL countries. Thank you so much. Nancy Lions ORG and our DC GPE newsroom Carol PRODUCT Master Katie Grifeld PERSON on this Tuesday, August 23 DATE here in our interactive broker studio. Hey, we just talked to Janet Lauren PERSON , our Bloomberg News Higher Education Finance ORG reporter about the big take most red about the endowment in Texas GPE , University of Texas Specifically ORG . Couple stories when it comes to colleges, universities, first ORDINAL of all, Nancy Cook PERSON , a Bloomberg PERSON , Katie PERSON putting out a story about student loan relief, forgiving student loan debt will cost between 300000000009 180 1 billion dollars MONEY over 10 years' DATE to a new analysis with the majority relief going toward borrowers and the top 60% PERCENT of earn The whole idea was that it didn't go Yeah so these numbers definitely throw some water give some perspective to that argument these numbers of course are from the pen orton budget model estimate it was really Tuesday DATE it had a present Joe Biden's PERSON long anticipated decision as soon as this week DATE on whether or not the US GPE is going to forgive some student loan dad of course the White House ORG has been Arguing against critics that this would add to rampant inflation obviously that's a big sore point for the Biden PERSON administration right now. No, it's interesting. Inside the administration, there has been discussion in recent weeks DATE and forgiving a higher amount of debt for low income bars who have already received pellets according to people familiar with Discussion. So, Something that we heard about a lot on the 2020 DATE presidential campaign from then Canada GPE Joe Biden PERSON so we will see ultimately what will come out I think we are expecting some decision on this very shortly in the meantime Wheaton College ORG is a small private school in Massachusetts GPE it had its credit rating cut Two CARDINAL steps above junk by moody's ORG investor service which sided challenges and increasing tuition revenue Tuition room and board and fees for the 2022 DATE 2023 academic year estimated to be about $75 thousand MONEY but soon can pay less due to aid and we'd send that the average annual cost for new students in this academic year was under 20 1000 CARDINAL for more than a third CARDINAL of its students. So I guess some of these discounts what Mood Is pressuring some of the revenues for the university. $75 thousand MONEY . That's a lot. That's a lot. This is Bloomberg PERSON .
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com, the Bloomberg Business app ORG . We've got about an hour and 13 minutes TIME until the closing bell let's begin with a day DATE 's economic news because it was on the weak side sales of new US GPE homes down in July DATE for a sixth ORDINAL time this year DATE and at the same time US GPE business activity in the month of August DATE contracting for a second straight month DATE that said it maybe Little premature to say these data points will create a change of part of the fed ORG we're also learning today DATE directors at two CARDINAL of the regional fed ORG banks Saint Louis GPE and Minneapolis GPE wanted a rate hike last month DATE of a full percentage. 100 CARDINAL basis points were seeing a move up on the longer end of the USU treasury 10 year DATE now at 304% PERCENT . Who are up by more than three CARDINAL basis points very little movement on the 2 year DATE right now at 329 CARDINAL in the equity market we've got the down lower by about four CARDINAL tenths of one% ORG with the Nasdaq composite push Hire PERSON by about two CARDINAL tens of one% ORG in the broader market the S and P is down just a 10 CARDINAL to one% the decline here led by real estate along with health care and utilities we're seeing a rally in energy stocks they're moving in tandem with a price of crude oil WTI right now Up by more than three and a half percent CARDINAL in the electronic session where 9365 DATE it seems as though the oil market senses a bit of risk of output cuts from Opec Plus given the gap that we've been describing between the high prices that you see in the physical oil market Weakness ORG in the future's market Saudi Arabia's GPE oil minister recently raising the possibility of production cuts to balance the market and I wanna touch on Macy ORG 's very quickly the day began with a retailer cutting its full year For profit and revenue even so the stock is up by nearly four% right now UBS ORG saying earlier today TIME the bad news may have already been priced in before today DATE shares in Macy ORG 's where down 29% PERCENT so far this year Over the coming decade DATE yep it's a big amount but still may not be enough to repair past damages to the agency so let's get to this story featured in the upcoming new issue of Bloomberg Business Week ORG out later this week DATE Bloomberg News ORG Congressional Tax reporter Laura Davis PERSON and with us on the phone from our Washington DC GPE bureau and business we get a digital webber with us on the access line in Massachusetts GPE it sounds like a lot of money and that it should fix everything dull but It's not. It is a big number for sure and yet the surprising part as lower points out in the story is that because of the past decade DATE of cuts and Sort PERSON of normal electrician due to things like retirement. It may not really be enough. That and you know, Did I find really interesting which I'm sure we'll talk more about is you know this really gets down to like there's something government funds itself right and there has been a huge a version to actually like giving the IRS ORG the the resources it needs to to do that and yet you know we're not that's not a light switch you can't turn that on overnight TIME So so Laura PERSON walk us through these numbers how how Fall is this number even though I know it.
Not a late switch. You can't turn that on overnight TIME . So so Laura PERSON , walk us through these numbers. How how Meaningful is this number even though I know it's a little bit of a of a wet blanket in terms of like it's not gonna instantly change anything, right? But it is not nothing. Yeah, correct. I mean, 80 1 billion dollars MONEY . You're just for context. That is number is a lot of money will be spread out over a decade DATE . So, you know, kind of roughly about eight 1 billion dollars QUANTITY a year. You know, on average that they'll get the IRS ORG is regular budget, you know, is somewhere around 12:14 CARDINAL , one 1 billion dollars MONEY . So, it's a, it's a really big number, but what they've gotta spend this on is a lot of what is essential Maintenance. They have computer systems that date back to the 1960 DATE 's. They have a lot of employees that they're going to need to bring in and train. The Airish has about 80 1000 CARDINAL employees kind of a height of the tax season. They're expected to lose Of those and over the course of the next 5 years DATE due to retirement. Hey Facebook Computer monitored organization as they had their their own budget cut over the Decades DATE so a lot of this is now just coming to Ruth PERSON and they're really having to to look at you know kind of they have more work outdated systems and employees that are about to leave that you know we'll take all the knowledge with them out the door Employees in the next 5 years DATE . Where are most of those losses coming from? Where are they going to have to hire? What kind of departments are we talking It's really, I mean, just because of, you know, that 50 1000 CARDINAL number of 80 1000 CARDINAL . It's really every unit. We'll see, you know, large losses, but you know, some of them are are employee are divisions that would automatically Male ORG workers the iris PERSON is largely been transitioning to you know digital filing but you know over half of that division is is set to retire in the next couple of years DATE other you know even important divisions IT workers and also you know kind of their big units things like Asians NORP and officers the people who actually are going out and conducting the aud Collecting the money answering the phones are all gonna see large losses over the next several years DATE . Okay, so everybody's favorite word. Audit. When am I, when is it gonna happen to me? So it really depends who you are. The IRS ORG has has committed and said that this will only impact people who earn more than 400 1000 Dollars MONEY a year as well as large corporations Republicans NORP have have disagreed with that number you know even talk to some tax or experts to say it can be a little bit more complicated than just a bright line you know here's incoming they don't touch anything below that however there's gonna be no immediate changes it takes a long time both to hire people get them trained to do this complex Can actually start selecting capture trends for audit and seeing results. You know, one text. Lawyer estimates you this could be 2026 DATE , 2027 DATE . It could be even longer before you really see that audit rate start to take up. Hey, Lord, just come back to Adulsa GPE . I mean, this is how we help fund the government. So, you would think this would be figures cross the most efficient or one CARDINAL of the most efficient, you know Organizations within the government and yet it's also, you know, become a bit of a political football. It really has and that has really you know created a lot of problems for the agency. It means that it's harder for them to recruit workers. You know it's a government agency. A lot of these people could Work in a private sector and make significantly more money in the IRS ORG also just announced that they're doing their security review of all of their facilities because of threats that have been coming into the agency. So you could see how this is gonna be a big challenge for them. If you know you gotta convince To come work for potentially less money and you know have have a target on their forehead. And so when we think about sort of this wave of employees at the IRS ORG would like to hire. I mean it's it's sort of similar to the aid that's coming in. It's not gonna hit at once necessarily like immediate relief. These employees have to be trained. I Yeah and for some of these employees, you know, to do these complex audits, which is kinda GPE where the bulk of the, the revenue is going. It could take, you know, sometimes 3 or 4 years DATE to really get people to the point where they can, they can do this on their own. So, this is a long-term investment both in the people as well as the agency, and so that's why it's really gonna, you know, it's not until almost a decade DATE That you'll really see kind of all of that 80 1 billion dollars MONEY put to work. So Lord you know the other element of this has been sort of the resistance you read about that Republicans NORP have for the IRS ORG and I'm curious you hinted this is
So Lord you know the other element of this has been sort of the resistance that you read about that Republicans NORP have for their and I'm curious you hinted this is that they're they're have been some Republican NORP representatives who have said you know we will roll this back and don't think that this is permanent how Realistic PERSON is that? Well, it's there's a couple things that they'll need to do. One is only to control both the the house, the senate ORG , and the White House ORG . So, even you know, if Republicans NORP win big in the midterms, they still have you know, Joe Biden PERSON tickets ahead within the White House ORG . So, it's not likely that in the next, you know, 2 years DATE or so that they could do anything but if you know, in 2024 DATE , Republicans NORP To have a full sleep. They could start defunding and calling back some of this money. That's going in. Of course, you know, it gets a little bit trickier once, you know, the money's been rotation for a couple years DATE . You know, some of the things that that Republicans NORP like, you know, having better customer service. If you start to see results there, they may be hesitant. For political purposes to pull all the money back. But it's certainly Something that's possible though, you know, unclear if or when that could happen. Just for service would be nice. I'm just gonna say. A great story and in the upcoming issue of Bloomberg Business Week Magazine ORG , you can read it and it's entirety. Laura Davison PERSON , thank you so much. Congressional tax reporter up Bloomberg News ORG on the phone in our Washington DC GPE bureau and are thanks to Jill Weber PERSON as well. He is the editor of Bloomberg Business Week Magazine ORG on the access line from Massachusetts GPE . We said it's in the upcoming issue that Also at Bloomberg PERSON . Com slash business week and all the Bloomberg GPE terminal. Alright, you are listening and watching Bloomberg Business Week ORG on this Tuesday DATE . We're gonna check in with our TV teams, talk about the markets, and just a moment. Carol Master PERSON , Katie Griffeld PERSON , this is Bloomberg Radio ORG .
Countdown to the clothes Bloomberg PERSON 's comprehensive cross platform coverage ahead of the US GPE market close starts right now. It says countdown to the clothes just 60 minutes TIME left in your training session Caroline High PERSON Taylor Riggs PERSON Gina Martin Adams PERSON join now by our colleagues Carol Massa Katie PERSON Greyfeld infantimic we've together welcome you your audience if you're a TV radio YouTube ORG addict we're currently seeing while lots of an addiction to trading these markets volumes are low and we're flat basically on the Yeah absolutely low I will say in terms of some out performance once again it's the energy names it's the outperformer of the year as we know it just pull up the energy select sector spider fund and it is up about three and CARDINAL a quarter percent today DATE 's session this is US Nat Gas Futures ORG hit $ 10 MONEY for the first ORDINAL time since I wait and as Saudi NORP has flagged the possibility of Plus cutting production in order to stabilize the volatile future's market. So, once again, surprise, surprise, energy, performer, Katie PERSON . In our performer, a big mover. Treasury ORG volatility. For example, big move yesterday DATE probably gonna see another big move today DATE . Anyone volatility just Cast your gaze on the natural gas market in the US GPE as well today DATE . There's a lot of volatility outside of the world of equities but Now we're seeing a lack of volatility when it comes to the overall benchmarks. I mean we are down just by one CARDINAL . Six CARDINAL points in the S and P. So totally flat 4136 DATE after yesterday DATE 's sell off. The dollar. The moving a little bit more of my full tents have sent us 100 Seven CARDINAL points. Challenging to raise itself up Tesla ORG having a lot to do that up three tens of percent PERCENT the Russell 2000 WORK_OF_ART as well actually smallcaps out performing on the day Gina Yeah and certainly a lot of wide dispersion between sector performance as well. So, don't be fooled by that really team headline of down oh. Four% for the S and P 500 because you've got a 500 CARDINAL basis point spread between the winner on the day DATE , energy, and the loser on the Real estate a very distinct sort of bond market skew to this as well though not only oil prices impacting the energy stocks trading higher but also when rising rates are one CARDINAL of the big drivers of the equity market you tend to see real estate utilities come some of the defences like utility staples real estate under performed so they're definitely isn't bond Trying to find some fundamental influences while with some of the key movers on another white sort of unchay on sort of the headline in deceased underneath the surface and taking a look at JM Smucker ORG of course the package food company boosting it's annual DATE outlooks Barclays DATE comes out saying that they're positive on that Macy ORG 's of course Carolina PRODUCT great interview that you did cutting that full year forecast for profit City ORG group though saying that such a prudent move for them to do and share a sort of rack positively as well to the downside take a look at Metronic PERSON first quarter results did beat expectations they affirm that full year forecast And was there were positive but there are still continuing to highlight those macro economic concerns and so of course that is still a headwind for this company and Paulo Alto Networks ORG that know that we were here after the closing bill yesterday DATE when we got a lot of those quarterly DATE results come out it advances Again Furthering Analyst expectations on some of the consensus numbers that they continue to put out analysts just continue to be positive singling out billings of course here as a key highlight And that pushes us forward to what earnings we expect after the bell. Tall brothers of course. Gonna be a great micro perspective on what is a pretty dye macro trend and once again evidence by the new home sales. Plummeting today DATE 's slowest pace since early 2016 DATE purchases dropping 12 almost 13% PERCENT way more than perhaps the actual small growth that we wear anticipating and Decline ORG this year DATE . Really it does show that in some ways the Federal Reserve ORG rate hikes are working Carl PERSON . Yeah absolutely I'm curious what Toll Brothers ORG has to say about those the higher rate higher mortgage rate environment and the impact it's having on that company. Speaking of rates John Hatsy PERSON is over He waited on all of the discussion.
The higher rate, higher mortgage rate environment and the impact it's having on that company. Speaking of rates, John Hatius PERSON over Goldman Sax ORG , he's a chief economist. He weighed in on all of the rate discussion in hidden terms of his Implement when it comes to interest rates and he says that could maybe ultimately bring down inflation check it out. I think it could be a couple of years DATE . I mean, really get to the, you get to the, you know, mid threes or or maybe even a little bit higher and then, then you stay there I think while inflation will look a lot better a year from now DATE I think it'll still be significantly above the target and ultimately they do want to get back down to pretty close to two% ORG So interesting. Write this kind of place into guys. The conversation we've been hearing and of course that was Yan Hatu PERSON serve our Goldman PERSON . But that maybe we see the Fed ORG 's targets day a little bit higher. An inflation stays a little bit higher because we we're gonna need that Order PERSON for it to ultimately Katie PERSON bring down inflation longer term it's really interesting to think about when we do hit terminal do we stay there to hotsies point I mean if you look at past hiking cycles the fed ORG doesn't tend to stay at that Destination for too long before cutting but this recession could be different. This hiking Could be different and I mean it was inflation at eight or TIME nine% right yeah I know exactly and I think that is the key is we're in a different type of environment this is a Environment than we've been in for more than 20 years DATE so using the last 20 years DATE as a representative of what to expect next is proven to be a giant fallacy and the other thing that I think we wanna look at is What does the health how slow was the fed ORG getting going? We talked a lot earlier today DATE . Taylor PERSON talked about the Taylor PERSON rule. The Taylor PERSON rule says they've got a long ways to go to even get to neutral. So, I I sympathize with this case. I do think that it is more likely that it has to go much higher, frankly than they have in the past and we shouldn't expect what's happened in 2030 years DATE to be a representative of what we're is likely to happen in the next year DATE or two CARDINAL . It's just not realistic. I am curious too when you talk about some of the delay in getting going. We've often Won't even be felt until the fourth quarter DATE . So, we're hiking and we're hiking and then Maybe I'll have a tire bed maybe the speed at which we get there I given some of those risks and Interesting when I was talking to the CEO Macy ORG 's earlier he was really saying it's all about the way in which we are a recession If her hair's consumer, if we talk about it too much, if the R word becomes too prevalent, if we do see that it becomes reality and it's consumers June DATE dial back overall. The luxury and those still very strong, still willing to spend. Yeah. And as The stock market impact has yet to affect those earning affair amount. Right and how much can we talk ourselves into it? We talked about this a little bit yesterday DATE as well. Can we talk ourselves into that giant R word of recession? The other thing I bring up though is how interest rate sensitive really is the economy. How interest rates sensitive is the household? When you're looking at the aggregate numbers, debt relative to Hey very very low debt service relative to GDP record low levels so that does give the Fed ORG more wiggle room as well and I think maybe we're sort of underestimating that how how strong is this potential household story in an environment where debt doesn't look like it did for 10, 15 years DATE either. And I would add on the strong labor market also gives the fed ORG some room to play with. If that starts to come undone, then maybe it's a different story going forward. Alright, that's gonna do it for now, folks. We will be back in less than an hour's TIME time. Our cross platform coverage on radio, TV, and YouTube ORG beyond the bell. We'll You down to the clothes on this Tuesday DATE . Tim Stenovic PERSON on Bloomberg Radio Studio ORG at Bloomberg GPE headquarters in New York City GPE Bloomberg GPE business week. I don't know as we work our way through the week DATE . Mm hmm. What do you think about with the markets? It is interesting that sort of note we ended on that they were still at a risk of talking ourselves Recession because obviously expectations inform how you behave that impacts the reality that we live in so I would understand it.
Right but he was somewhat optimistic about his consumer. It's funny in the makeup room this morning TIME . This is an informal survey but I said to It's pretty crowded. Are you not spending one CARDINAL person said yeah I'm thinking about it a little bit other people are like I'm spending a lot and those who are saying in particular that we're spending a lot all had kids And we're like, yeah, I'm out there, you know, back to school. Yeah. I'm out there spending. That's an important asteric. How about your world? Say I'm thinking about airfares. Like when is the best time to book? Especially, I don't know. It feels like prices are still really high right now but similar to what we're talking about in the heart, housing market. Right. What are those prices gonna crack? Cuz you're thinking about travelling. Yeah, I would love to. No no no Seems still really high. Agree, just watching, right? Could you think at some point there's gonna be a little bit of a tipping point where people are gonna start pull back and some of these numbers will come in. Anyway, add it all up. We're gonna have a lot more to talk about with our TV colleagues. We will count you down at the clothes at 4 PM Wall St TIME time. Right now though, back Hey Nancy PERSON Thanks Carol PERSON guilty verdicts today DATE in the second ORDINAL trial for two CARDINAL man accused of trying to carry out a kidnapping plot against michigan governor Gretchen Whitmer PERSON a jury also found out on Fox ORG and Barry Croft Junior ORG guilty of trying to obtain a bomb to blow up a bridge as part Kidnapping scheme. Us GPE attorney Andrew Burg PERSON says he's pleased with the juries decision. No golfer no public official should have to contend with what Governor Whitmer contended with here All over electric officials Everyone. The defendants though do plan to appeal. Ukraine GPE is set to markets independent state from Soviet NORP rule tomorrow it's also 6 months DATE into the Russian NORP invasion US GPE officials are warning of a potential Russian NORP attack and So hearing from officials the US GPE plans to announce a three 1 billion dollars MONEY arms package to help Ukraine GPE in its spy Earlier today TIME Western NORP leaders at the Crimea ORG platform conference in Keith GPE warned Russia GPE against Other parts of Ukrainian NORP territory after Crimea ORG a mid rumors Russia GPE is planning to do so in various occupied areas outgoing UK GPE Prime Minister Boris Johnson PERSON spoke virtually Be more important for us all to stand together In defense of the Principal of International Mall ORG which is that no territory, no country, Acquire territory Johnson PERSON says Britain GPE will never recognize Russia GPE 's annexation of crimeia or any other Ukrainian NORP territory. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalist and analyst in more than 120 CARDINAL countries I Nancy Lyons Auntie Lyons thank you so much Nancy Lyons PERSON in our 99 one CARDINAL newsroom in Washington DC GPE Carol Master PERSON along with Katie Grayfeld PERSON on this Tuesday DATE We talked about it on our plan in college. It was among the most read stories on the Bloomberg PERSON today DATE . And perhaps things are changing a little bit when it comes to the powership between workers and employers right now, Katie PERSON . Yeah, real dynamic shift from what we saw during the pandemic. This is a survey conducted by the Harris Poll for Bloomberg News ORG 58% PERCENT of respondents said that they believe companies have more leverage in the job market these days that's an increase of five CARDINAL percentage points from So, definitely a change in sentiment, Carol PRODUCT . That seems like a big deal. And it comes at a time when it's hard to really figure out exactly where the US GPE economy is headed. If you just listened and watched our discussion with our TV colleagues, there are some strong data points. There's some week DATE data points. Well, the more aggressive, will the Fed ORG not? I mean, this is kind of where we are. I mean, on one CARDINAL hand, the labor We know we say it over and over. It's red hot right now. The economy added double the number of jobs is expected last month DATE and recent data show that initial unemployment claims drop for the first ORDINAL time in 3 weeks DATE suggesting continued demand for labor. So, there's that going Right? Time think about all the headlines that we've been sorting through over the past
Unemployment claims drop for the first ORDINAL time in 3 weeks DATE suggesting continue demand for labor so there's that going on right but at the same time think about all the headlines that we've been sorting through over the past few weeks DATE Peloton ORG eliminated hundreds CARDINAL of jobs and half CARDINAL of you as companies according to a recent survey are planning layoffs of some form. So, again, it's not showing up in the big headline numbers yet but That. No, it's a backward looking sort of still. It's a little bit of a lag. It's best we have though, right? Exactly. Yeah, it is the best. With that in my employees say that they are feeling less empowered to ask for everything from raises to remote work, in the poll as Katie PERSON said 59% PERCENT indicated that even though they would like a raise with inflation near the highest They don't feel comfortable asking for one. Yeah. Also change is the potential that people might have to return to the office many major firms are saying this will be the last summer DATE fully remote work employees appear to be picking up the message remember all the stories like things are gonna change forever I like working from home when I can. I know you do. This is Bloomberg Radio ORG .
24 hours TIME a day. Less than 43 minutes TIME until the closing bell a mixed picture for the equity market let's get you caught up with a very latest will cross to the Bloomberg Macros Squap desk and check in with Bill Meloni PERSON hey Bill Hey PERSON , good afternoon TIME . That's right. You stocks mixed in a quiet tape at the Dow ORG currently down 104 CARDINAL points. S and P ORG 's are little change and as that is higher by 40 CARDINAL US GPE , 10 year old DATE at 304% PERCENT , gold is up 10 CARDINAL oil is climbing, and bitcoin is higher by two% ORG . Among the main 11 CARDINAL After earnings After the bell Hey Bill thank you and if you have a Bloomberg NORP terminal and you wanna get live audio updates on it the function is SQ U A then of course the green go key Business flash. Alright dawg thank you so much well this story it is another of our most read on the Bloomberg PERSON today DATE it's about how the era of economic whiplash is just beginning although kitties you said earlier I'm like I I feel like I've been whipped last for like 2 years DATE straight now so it's too late what is the future hold it could be a new round alright so let's get more on this Bloomberg PERSON opinion column today DATE here is Bloomberg PERSON opinion calmness Eduardo Porter PERSON he covers Latin America LOC US GPE economic policy immigration he's the author of American NORP poison how racial has hostility destroy Promise PRODUCT and more. He joins us here in studio. Katie PERSON said like it does feel like we've had a ton QUANTITY of whiplash already this year DATE . So what are you writing about? Well that's true. The GDP going in another direction From what's been going on for the last 2 years DATE , right? We got hacked by a momentous shock that we have never seen COVID. And we're coming out of that one and we're whacked by this massive energy Fiscal stimulus So what does the fall out look like what is the next wack look like? Well the next whack is coming from the fed ORG right in one direction or the other and I think that that's what's moving the markets most. And looking at an economy that looks kinda like Crazy weeks suddenly Labor ORG market that does not look that crazy week and inflation that's been running very hot but suddenly in the last 2 months DATE seems to be you know stabilizing somewhat Over tightening and so I think that that's where we will we we will see the next big mover Right of the of the economy. Well, there's this line in your story and I know you've kind of hit at this already but I wanna go back to it. Like you say, these shocks, these crazy shocks. You know, the coronavirus pandemic, Russia GPE 's invasion of Ukraine GPE , right? It's unbelievable and we don't.
Kind of hit at this already but I wanna go back to it. Like you say these shocks, these crazy shocks. You know, the coronavirus pandemic, Russia GPE 's invasion of Ukraine GPE , right? It's unbelievable and we don't really know what it all is like on the other side. But I'd love Worth this. They might also tell us something real. Rejiggering economic relationships in a way that will complicate the policy response. So, is it just a case of data not reading things correctly or is it the relationships I've one another? Cuz as you say, it's like, we get something on the labor market Week and then we get something on the labor market that's strong like it's very difficult how to square all of this. I think there's the easy part There is some data issue. There is some mis measurement out there. So, the fact for instance that GDP and GDI which should by definition be the same thing are looking very different in the data. Across domestic investment and and gross domestic product. Right. A data mistake it's a data error Made a mistake or you just don't know I think the data that is used to to construct these these indecisive Is I think particularly noisy. Okay. So that's the easy part. The more difficult part is okay. What is we used to be we were accustomed to okay when the economy strong we see employment rising when the economy is weak we see employment falling and now we're seeing these relationships kinda like a little bit turned upside down so that's where you wonder okay how has this relationship changed And still of course I think that over the long run it's true in a week Employment. It's gonna go down because businesses are gonna start, you know, letting people go and stuff. So, over the long term, I'm sure that these things still hold but maybe there's new lags in the system, you know, because Trying to hire last year DATE but we weren't finding enough workers and so we're Whiplash ORG effects How these things work together? Whether that whiplash and that change of behavior becomes permanent. I mean, at the tail ends, if you look out farther, far enough, do you see, you know, the economy With businesses between businesses sort of returning to normal or do you think these will be some permanent changes? I'm kind of conservative. So, my guess is that we do go back to a normal that roughly looks like the normal that we had before. I don't see, you know, Earth LOC is still a sea, you know? And and I but And one thing that I point to in the column is you know friends with this idea working from home Working from home ORG is gonna stick around and suck to some degree. Right? Right hey Edward PERSON just got about 20 seconds 25 seconds TIME does the this whiplash increase the chances of a fed ORG policy mistake just quickly Maybe you know the question is do I do it harder softer but you know whether it needs to cool it or it needs to you know not cool it Couple of years Eduardo Porter PERSON economic policy and immigration calmness of Bloomberg PERSON opinion right here in our interactive broker studio check him out add opinion on Twitter Iheartradio PERSON .
Broadcasting live from the Bloomberg NORP interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the country series XM PERSON channel 119 CARDINAL and around the globe Iheartradio GPE . Com. Alright, I'm just gonna put it out there. Been a little obsessed with this next story and sometimes I get obsessed with strange stories but this is about Apple ORG and manufacturing the iPhone ORG . In India GPE . I'm really charmed by how obsessed you are with the story. No. Alright we'll get to it in just a moment first ORDINAL step though back to the markets and the trading day just 29 minutes ago TIME Doug Crisner PERSON The S and P has been fluctuating I think between games and losses right now we're down just about a 10th CARDINAL of one% ORG volume though on the light side in that maybe exaggerating some of this price action just a bit days economic news was on Premature to suggest that these reports are going to change the feds determination to fight inflation with higher interest rates. Today DATE , we learned that directors at two CARDINAL of the regional fed ORG banks St. Louis GPE and Minneapolis GPE they wanted to hike rate Last month DATE by 100 CARDINAL basis points. Go to 10 year DATE treasury now up about a little more than three CARDINAL basis points a kneel to 304% PERCENT . The 2 year DATE interestingly down about a basis point to 329 CARDINAL energy shares moving higher intended with the price of crude oil WTI now in the electronic session trading 9365 DATE we're up more than three CARDINAL . Six% The market senses the risk of output cuts cuts from Opec ORG plus given the gap that we've been talking about between high prices in the physical market and weak futures contracts Saudi Arabia's GPE oil minister put his finger on this earlier and raise the Ability of production cuts to balance the market I've got prisoner that your Bloomberg PERSON business flush alright Doug PERSON thank you very much for that update we've been giving you a lot of the most red stories on the Bloomberg PERSON today DATE and this one let's add it on to that list it's also a Bloomberg GPE exclusive a mid the sign or I guess maybe it is really I should say a sign of the Geopolitical tensions and it has to do with Apple ORG and the manufacturing of the iPhone ORG . So, let's get you it Katie PERSON . Yeah, I'm excited to hear about this one. Joining us now to talk about it is Onorag Rana PERSON of course of Bloomberg Intelligence. He's a senior software and IT services analyst. So the headline of the story, Apple ORG 's new iPhone ORG to show China GPE closing tech app with China GPE , Anticipated NORP In the two CARDINAL companies.
China GPE closing tech app with China GPE not closing a completely add some had anticipated but narrowing the gap between the two CARDINAL companies walk us through why this matters I know Carol PERSON is obsessed with the story of the But put it into layman's terms why this matters. I think it matters a lot less than You know, I I guess a new slash David. And I and I know it's a very important thing for Apple ORG to diversify outside of China GPE . But in our opinion that's going to take that kids. It's not going to be easy for them to do it. Because currently most of their products are assembled in China GPE . It's said it is they have demand power. They have the volume. The the Hey let's say in India GPE and Foxton PERSON is going to create Or is going to assemble these phones it is going to take some pressure off of them but it's going to take decades DATE before we you know I would say D precise shining anything significant way Decades DATE I'm a pretty patient person on a rug but is it kinda where we're moving that a lot of manufacturers are looking I mean turn also is tired of being you know the world's manufacturer especially when it comes to kind of you know lower wages not it's not high tech that's Looking to move into. So, will we ultimately maybe in a couple of decades DATE ? We were not seeing, you know, a China GPE manufacturer. Let's say for a company like Apple ORG . It is going to again as a shocking to be easy and and for me the the answer is going Countries and geographies as well as robotics I think the advancement is robotics is going to be very important because you have to remember Fox Conference ORG over a one 1 million CARDINAL employees around the world it is going to be not easy to come up with that amount of labor so on this you know technology Announcement PERSON can help do it they will parts labor supply all of those things matter because you know remember apples a lot about you know growth marches of extra so unless any of somebody is willing to pay 2030 percent PERCENT more so they icons it is not going to be easy for them to assemble it anywhere else I already pay a lot I'm just gonna say Okay so we have decades DATE to wait here but I mean if we push out even further is there ever a future for Apple ORG that doesn't include China GPE ? Hey it is going to be very difficult because remember right now China GPE council about 20% PERCENT of their revenue also it is one of the biggest growth markets not just for Apple ORG but a lot of USB companies and biggest I would say growth driver a lot of people I would argue that in Whoever really can afford one and I probably has one right now and may need to upgrade it once in a while I get that part or you know younger people coming in but buying large the biggest roads drivers for the iPhone ORG which drives most of Apple's Avenue ORG is going to be emerging market China GPE India GPE Brazil GPE Indonesia GPE and and other You know countries like that. You know I do think about the apple supply chain on a rug. You know this. It's legendary. An incredibly efficient and robust. I love you know watching you order something and how it works it's way you know from China GPE into the hands of me and the United States GPE here. But does the movement to India Global ORG supply chains and where they may or are already moving even if just a little bit as we come off of 2 years DATE of the pandemic where everybody is obsessed with kinda GPE rethinking their supply chains. Yes, they have to. I mean, I I think it's going to be in the eye. I think it's gonna be lot more in Vietnam GPE . It's going to be Mexico GPE . It's going to be all over the world because You know the I don't think anybody expected the supply chain to be impacted as much as you know it happened over the last few years DATE so it everybody has to be rethinking the you know they're global supply chains and in my view it's not just because of you know US GPE China GPE political tensions it it has to just do with why why Main concentrate in 1 year DATE .
Hey China GPE political tensions it it has to just do with why why remain concentrated in one CARDINAL geography or one CARDINAL area anyway because of natural calamities An honor really quickly we got reporting earlier this month DATE that Apple ORG expects to maintain iPhone ORG sales even as the market slows from what you can tell company still on track Yes I I did we just published a big analysis on this that we don't think that I want 40 CARDINAL is going to be a big deal from a financial state because it's the same form factor with very minor upgrades. I think next year DATE there's going to be a big refresh cycle for a lot of users. Because the economy is still you know a bit big I would say for For a lot of people to upgrade. Alright, so not now I'm for me to necessarily buy a new phone. I get away for another year DATE . Alright, Anaro ORG , thank you, thank you. When we wanna know things about Apple ORG . Certainly one CARDINAL of the guys that we reach out to and he is senior software and IT services analyst at Blueberg Intelligence ORG turning us on the phone from Chicago GPE . Alright, off to DC GPE with another update on all the national With Nancy Lyons PERSON head out thanks Carol New York PERSON and Florida GPE are the focus of today DATE 's primary elections Bloomberg PERSON 's Washington GPE correspondent Joe Matthew PERSON says in New York City GPE thanks to redistricting democratic NORP congressman Jerry Nadler PERSON from the upper west side and Carolyn PERSON From the upper east side are battling it out in a house primary. These are two CARDINAL individuals who are elected at the same time in 1992 DATE Rose into the leadership together have worked together and now find themselves staring across Central Park LOC in what has become a bit of a bitter campaign. Bloomberg PERSON 's Joe Matthew Governor's PERSON race in Florida GPE Democratic NORP Congressman Charlie Crist PERSON and state agriculture commissioner Nikki Fried PERSON are fighting to become the potential opponent for Republican NORP governor Ron DeSantis PERSON . The US GPE is urging its citizens to leave Ukraine GPE . Official say they believe Russia GPE 's preparing to target civilian and government infrastructure as the war reaches Ukrainian NORP government on celebrations in the capital cave on tomorrow DATE 's anniversary of independence from Soviet NORP rule that was over fierce Attack PRODUCT . Michigan GPE Governor Gretchen Whitmer PERSON says today DATE 's guilty verdict for two CARDINAL men who tried to kidnapper shows those who tried to commit violence will be held accountable. This is US GPE Attorney Andrew Burch PERSON . Firms to this plot was very serious very dangerous Oppose PERSON the threat not only the governor personally and her family but also the innocent bystanders and the basic social order. Bird ORG says no public officials should live in fear that offends plan to appeal. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalist and analyst him more than one 20 CARDINAL countries. I'm Nancy Lyons PERSON . Nancy Lyons PERSON , thank you so much. Nancy Lyons PERSON in our DC GPE newsroom. So, we mentioned of course the most red story on the Blueburg Terminal ORG . Has to do with Julian Robertson PERSON , hedge fund guru. He Somebody who set the tone created helped really create I feel like the industry that we talk about today really one CARDINAL of his generation's most successful hedge fund managers a mentor to a wave of investors known as He has passed away at the age of 90 DATE . This is our most right story on the Bloomberg PERSON . In the meantime, our Hema Parmar WORK_OF_ART and Catherine PERSON who follow the hedge fund industry. They have reached out to a bunch of well-known folks in the hedgehog industry to weigh in on his Global ORG management Lee Ansley PERSON from Maverick Capital ORG John Griffin of Blue Ridge GPE saying that the world has lost the roar of the person I have known for 30 1986 DATE have been in virtually constant contact ever since he taught me not only about investing but about life. Well, and stand drug and miller ORG also weighing in close friends his own family office and he says Julian NORP was a founder of our industry Absolute giant so many ways. He was mentored to me in so many others. The tiger cubs are a legacy of mentored investors that will never be matched and while his intuitive genius produced amazing returns in the philanthropic achievement to used those returns to fund where equally imp I will always remember him for the class and dignity that was pervasive throughout I will miss him dearly as will so many
Achievement to used those returns to fund were equally impressive I will always remember him for the class and dignity that was pervasive throughout I will miss him dearly as will so many others he let an outstanding life and truly made a difference this again from Standruck PERSON and Miller PERSON And if you read through these memories I mean you see the word mentor over and over again this from Chase Coleman PERSON of Tiger Global Management saying that he made time to be a true mentor always leading by example and pushing us all to become the best versions of ourselves for that and for his friendship I am forever grateful and we just think about how many people went out you know under his Leadership PRODUCT learned and then went off to run their own hedge funds and investment organizations if you well and just really impacting another generation. Just an incredible legacy. Check out more of that story. You can find it@Bloomberg. Com. This is Bloomberg Radio ORG .
Markets, headlines, and breaking news 24 hours TIME a day. As Bloomberg PERSON . Com, the Bloomberg Business app ORG . There are fewer than 13 minutes TIME until the closing bell a mixed picture for the market we're seeing a little bit of weakness come through now for the S and P 500 down about two CARDINAL chance of one% ORG real estate in health care leading the decline here on the positive side though energy rallying with the S and P 500 CARDINAL energy Up about three CARDINAL . Nine% energy shares tracking the price of crude oil higher Saudi Arabia's GPE oil minister recently raising the possibility of production cuts as a way of balancing the market in the extended session right now WTI higher by more than three CARDINAL . Six% we're at 93 CARDINAL Nasdaq ORG comp is essentially flat wanna touch on Macy ORG 's very quickly shares her up three% even after the company cut its full year DATE forecast for both profit and revenue UBS ORG saying today DATE the bad news may have already been priced in Before today DATE through monday DATE 's close macy shares were down 29% PERCENT also showing weakness today DATE zoom video shares are off 16% PERCENT After the bell yesterday DATE we learned that the company cut its annual DATE revenue forecast apparently zoomed fail to add as many enterprise customers in the last quarter DATE as analyst had expected days DATE economic news was on the weak side sales of new homes in July DATE down for a sixth ORDINAL straight tum month I should say and Best business activity contracting in August DATE for a second straight month DATE . It may be premature to say these reports are gonna change the Fed ORG 's mission of fighting inflation with higher rates. Today DATE , we learned directors at two CARDINAL regional fed ORG banks wanted to high grades last month DATE by 100 CARDINAL basis points. Bloomberg PERSON business flash. Thank you so much. And it is 349 CARDINAL on Wall St. The following is an editorial from Bloomberg GPE , Penyan PERSON . Was written by the Bloomberg PERSON editorial board President wants Western countries to ban Russian NORP travelers in hopes of boosting pressure against President Vladimir Putin PERSON such measures may seem appealing in light of Putin PERSON 's invasion but a blanket travel ban would be the wrong response. The European Union ORG has better and fairer For example if could focus on ending on you visa privileges for Russia GPE 's oligarchs and offer humanitarian visas to help opponents of the regime it should also encourage up brain drain of students and scientists which would help erode Putin PERSON 's ability to sustain his Invasion FAC and repression such measures will be more complicated and perhaps less satisfying than simply rejecting Russian NORP entrance wholesale but they'd be better for Europe LOC and crucially far more likely to hit Putin PERSON where it hurts this auditorial was written by the Bloomberg PERSON For more Bloomberg PERSON opinion please go to Bloomberg PERSON . Com slash opinion or OPIN GPE go on the Bloomberg Terminal Bloomberg PERSON opinion. Oh no no no. It's the question that drives us. This is the drive to the club. Dawn. Here we go everybody just about 9 minutes TIME left in today DATE 's trading session driving towards the clothes we are just off our lows of the session but little change about the S and P the Nasdaq Just heard from Doug PERSON . Down about half a percent PERCENT on the Dow Jones ORG industrial average. Here in studio with us, we welcome Ken Van Luen PERSON , CEO, founder, Imagine Director of the Wealth Management ORG firm, Van Luen PERSON and Company. He is as we mentioned here in our studio. Nice Here with Katie PERSON and myself, how are you? Nice to be here. Thanks for having me. Well, it's great to hear.
As we mentioned here in our studio nice of you here with Katie PERSON and myself how are you? Nice to be here thanks for having me. Well it's great to have you here. We've been talking of course a lot about a big macro themes but front center is the passing of Julian Robertson PERSON . It is our most red story on the Bloomberg PERSON 90 Years old DATE , a legend in the hedge fund industry. For a while how do you think about it Well Julian NORP while I had never met him was always considered to be someone of an icon in the industry a gentleman I've you know he was from the south so he embit bodied all of those ideals Tiger Cubs PERSON underneath him. Yeah. Right so many people learn so many great things and he passed along Call on code secrets to them and now they continue to apply the trade and probably the secrets are continuing to be passed on. So, and just you know, a tremendous business person, philanthropist, gentleman, Probably dad. Father. Right? Pretty neatly to you know this sort of environment that we're in right now. Oh totally I mean because even in our own shop right now when we're managing assets right we're not take well we never because we're fiduciaries you can't take bigger than five% position so the but you know you take a little positions cuz you're really not sure what's working and what's not because as we're seeing it can turn on a dime and it can turn instantaneously and today DATE Vice versa. Like Julian NORP , you are a stock picker and you do though take some positions. You two CARDINAL at least at this point health care staples in telecom those are your big three CARDINAL areas that you're finding opportunities or at least allocating new money correct I mean what we're doing is we're looking especially like a couple companies like TJ Maxx I think still is anything recession proof What's a recession that hasn't been defined yet? But TJ Maxx is considered a bargain hunter's paradise so people of all income streams will will go to a TJ Maxx. So, we like that very much. It's a very well-run company and off-price retailing because right now, they're getting from some tremendous buys in the market. We like them. They're well positioned. We like health care because health care again is one of those areas That can weather the storm. We are been talking a lot about health care. I feel like since the inflation reduction act and there's initiatives in there but I just feel like, you know, Amazon ORG and others pursuing a company. We just feel like there's a lot going on in the health care space right now. Especially health insurance, right? Health. Elevance health. I mean these are some really strong financial companies with big market positions. And people pay their premiums for lack of a better world. So, TJ Maxx, health care, health insurance, we like those, what are you avoiding right now? What doesn't look good? Of course, anything gold related right now, minors in particular were avoiding. Interesting. Because we don't see them right now, you know, like if you look at the gold, just the GLD ORG . It hasn't performed well at all even during this quote unquote inflationary environment that we we've had. It's not working. So, why be there? So that's that's an area that we're not in. Thankfully we were able to come out of a little bit of energy where slowly inching back into energy you are yeah we like it don't try the energy trade basically don't fight it because you know hey look as we go towards the end of the year DATE and we have to remember it's already gonna be September DATE in a couple of weeks DATE that's right we're gonna Yeah, I know. Right we're gonna start to you know people are gonna wanna show up at the end of the year DATE with things that have worked in their portfolios so energy is clearly work this year Tool company. Funny money managers come in here and they're like a lot of them talk about Name what specifically about it It's first ORDINAL of all just right it's that handyman specialty it's that small contractor the guy who's busy the convenience of snap on remember they bring the tools to your site you don't have to track right the trucks you don't have.
All contractor. The guy who's busy, the convenience of snap on, remember they bring the tools to your site, do you don't have to talk? You don't have to go to your hardware store. Order them. They come right to you. And it's a tremendously well run company. They just increase their dividend a little bit Ago and those are companies we look for, right? That are economically healthy that are raising their dividends and have the confidence to do so going forward, you know, because we hear about what the CEOs are thinking about the, you know, the next 6 months DATE , 9 months DATE , year DATE . So, you care when a company comes out, reports their earnings and We're maintaining our dividend. We're raising our dividend. We're doing buybacks That is certainly something you've taken to consideration. Very much so. Very much so. Fix income market do you see any opportunities there as we talk about dividends and that consistent cash flow High yields Is going to be good for a lot of people. Substantially earlier in the year DATE so much so if we remember we look back at the analyst Whitman PERSON I think she basically talked How tremendously Opportunity in the spring was a municipal bonds honestly Alright we're gonna have to leave it on that note. Thank you so much. Good to talk names with you. Really appreciate it. And come back soon. Thank you for your time. Kim Van Lu PERSON and CEO, founder at Imagine ORG Director of Van Luinen Company ORG doing us here in our interactive broker studio and folks, we just have a few minutes TIME left in today DATE 's trading session just about two and a half minutes CARDINAL and we are seeing equities. It's been kind of a choppy We've been staying near our lows of the session really for the last few hours TIME and right now we're relatively flat on the S and P that was down about one third CARDINAL of one% ORG call it flat slight gain when it comes to the Nasdaq it's just up a hair up eight CARDINAL points at 12 389 CARDINAL alright right now it is time for a cross From coverage on radio, TV, and YouTube ORG . We're gonna head over to our TV colleagues for beyond the bell and we're gonna count you down to the clothes on this Tuesday DATE . Here. Full market coverage on the back. Bloomberg PERSON 's comprehensive cross platform coverage of the US GPE market closed starts right now. We are about 2 minutes TIME away from the end of the trading day Caroline GPE Highs Taylor Riggs PERSON and Gina Martin Adams PERSON counting you down to the closing bell hit us to help Beyond the bell is our global simulcast. Carol Massa PERSON , Katie PERSON 's Greyfeld in for Tim Stanovic PERSON . We bring together our TV radio and YouTube ORG yes ladies day again. And we love it. There's a lot of love on Twitter PRODUCT , on LinkedIn GPE , really. So, I'm the only one that gets the email. Well, Tim PERSON I'm missing much of you looking at the benchmarks girl alright exactly we really haven't moved around too much and we're pretty flat on the day DATE here slight gain holding on to the Nasdaq and if you look at the S and 500 CARDINAL kind of even split 210 PRODUCT names higher 289 lower four CARDINAL and changes just like investors some buyers some sellers that feels like the trade today DATE and if you focus In particular it is just remarkably Countdown to the big events at the end of the week DATE Oh, that big event. Katie PERSON , are we still speaking in tongue? You mean Jackson Hall PERSON ? That's big event. But who's counting? We think about her 2 year DATE yield. It started that week DATE auction that we've talked about. Maybe unch on the day though. You're really seeing a lot of moving of Maybe fewer concerns about global growth on the horizon but you would know it if you saw some of the housing and some of those PMI ORG data Yeah and you wouldn't you don't really see that showing up in the sector or industry performance either and it seems that the market is really more trading on the macro trading more on what we're seeing in oil prices versus Yeah the market itself is flat but the sector is an industry show a lot of dispersion but not necessarily closely linked to that economic data. Look at you say in trading
Show a lot of dispersion but not necessarily closely linked to that economic data. Have a look at you say in trading on the macro not many people were actually really trading today DATE volumes are like we're off by about 11% PERCENT on the S and P 500 however we were losing some steam just into the market 12381 DATE is where we close down also lost a little bit of we're off by five CARDINAL Industrial average 154 CARDINAL points lower let's look at the russell 2000 DATE there cos that had been an area of growth that really been shining light on and at two CARDINAL lost a lot of its games were only up by two CARDINAL tenths of a percent on the day Yeah and one of the things I've been watching is Tesla shares they were up another Today DATE 's session don't forget that 341 CARDINAL stock split hits a little bit later on this week DATE they will begin trading on a split adjusted basis come August 25 DATE but some gains in what's been a pretty down market today DATE absolutely And it honestly the game's really concentrated though as much as I would like to say there were more games than there are very concentrated in energy as you can see even in the industry view here energy Up three CARDINAL . Seven% on the day DATE really a big stand out but we did get a little lift for autos Tesla ORG 's news Helping the auto space now up two% ORG on the day and then on the other end of the spectrum all of those defensives healthcare defensive and pharma health care equipment and services as well as the consumer staples in real estate names so a very risk Risk day where the defensives are under performing dramatically only energy and odd is really standing out at the top of the charts. Yeah, a lot of red in today DATE 's trade. As for some of the individual gainers, Gina, Intel ORG , caught my attention, add its highs, was up more than one% ORG almost actually up Came out talked about a joint venture with Brookfield PERSON to jointly invest up to 30 1 billion dollars MONEY in ship factories in Arizona GPE around Bloomberg Intelligence Team ORG noting that Packed me provide a modest boost to earnings and reduce the capital outlay for its modernization plan so I thought that was kind of interesting Macy ORG 's Caroline ORG doing getting some great commentary from from that company CEO oh thanks Welcome welcome Macy ORG 's ending up about three CARDINAL . Seven% well off its highs at one CARDINAL point up almost nine% today DATE 's session company did lower its full sales and earnings that look but did talk about being committed to remate it's remaining one CARDINAL . Four CARDINAL for one 1 billion dollars MONEY buyback and dividend And then, you know, it's forecast. Wall St may be saying some of the downward news already reflected in some of the results here and I did wanna mention Palo Alto Network's ORG top in the Nasdaq 100 up 12% PERCENT holding on to the day DATE 's gains, reported better Expected quarter ORG results last night TIME . We talked about it. On our simulcast and predicted full year revenue that exceeded Alice ORG expectation. So, a mega app performer today DATE , Katie PERSON . Well, if we look at some of the mega under performers, we have to start with Zoom PERSON , of course, reported really ugly earnings after the bell yesterday DATE to recap, Zoom PERSON reported it's lowest quarterly DATE sales gain Lowest level since January 2020 DATE just to wipe out also a Twitter PERSON taping a bit of a dye there was a lot of drama on this name today DATE Twitter PERSON 's former head of security filed Complaint ORG alleging that there were quote egregious deficiencies Insecurity protections of course Elon Musk's PERSON lawyers coming out and saying that they've subpoenaed that whistleblower Twitter PRODUCT shares down by more than seven% and Domino's Pizza WORK_OF_ART to taking a bit of a dive news today DATE that Bill Ackman's PERSON Persian Square LOC has sold its According to filings domino shares down also. And Domino PERSON 's a course the company that's having to weather pretty high commodity costs when it's on the soft agricultural side of things I'm looking at on global macro movers and actually corn was on the higher Brazilian NORP weather and I'm looking on the high side also come on she's a branch crew WTI crew powering up more than Take on volatility and what they mean is we'll be there to well cut back production should we need to and the market moves on the back of that dollar weakness probably also happening a little bit we see still getting a little bit of bit on but really some of the vola Coming into natural gas here in the US GPE . We've seen
He's still getting a little bit of it on but really some of the volatility coming into natural Here in the US GPE . We've seen elevated prices just records being hidden Europe LOC . Here in the US GPE , we hit $ 10 MONEY . First ORDINAL time since it's 2008 DATE then we back Down PERSON . Might have to delay or reopening. That's of course being freeport energy. I'm looking what's happening in an effect spectrum and for once we had a bit more dollar weakness today DATE after the strength seen yesterday DATE . We have a strengthening loony sewed oil helping of course the Canadian NORP dollar go higher too with the Norwegian NORP Well strengthening the back of the all move but on the downside really is US GPE dollar and the Euro ORG even managing to pick up but most of the animals out there are saying Europe LOC missing the Euro ORG zone and an issue and Euro PERSON is likely to only be the beginning of how weak it is at the moment. We're seeing weakness across And bonds too. Little bit of that as well here within 415 CARDINAL credit Caroline NORP price lower yield higher so the weakness of course in the price is you're getting sort of a lift across the curve up Four CARDINAL basis points are so pretty much from 10 CARDINAL out to 30 CARDINAL when you think about duration yields on the front end unch unchanged as we of course a weight Friday DATE with Jackson PERSON home we started continue to go cross As we always do wrap up the old space. Go back to the quarterly DATE results that earning space. I'm gonna take a look at shares that in to it and I think what's really interesting. Fourth quarter DATE net revenue comes in better than expected. Two. 4 billion MONEY versus assessments of 234 CARDINAL . And a bottom line improvement as well. Fourth quarter DATE Did EPS ORG a dollar 10 CARDINAL estimates for ยข98 ORG and looking at forward guidance maybe a little bit light when you think about the bottom line first quarter adjusted EPS 114 CARDINAL to 120 CARDINAL estimates have been for 186 CARDINAL and yet there is sort of Buy back and the dividend as well Carolina LOC gets analyst excited too. Alright we do wanna get to Nordstrom PERSON cuz they too have just reported after the closing bell this stock initially dropping in the after hours TIME it's still down about six% seven% here and I'm going right to the outlook cuz the company Fiscal year DATE adjusted EPS ORG $ 230 MONEY . To 260 CARDINAL a share they had seen 320 to 350 CARDINAL so that is a big readjustment if you will still sees your revenue up six CARDINAL to eight% second quarter total revenue four. 10 billion South Estimate that was out there was 399 CARDINAL . Looking at the press conference we are seeing the CEO say while our quarterly DATE results were consistent with our previous outlook customer traffic and demand decelerated significantly beginning in late June DATE predominantly at Nordstrom Rock FAC So some issues in terms of consumers but also some issues in terms of inventory is interesting that Macy ORG 's CEO Chamber was saying look our inventory we think's gonna prove good space but the industry is awful nor is from saying we look at the Half of the year DATE we are aggressively right sizing our inventory while investing in supply chain and much merchandise and cap Mean Katie PERSON this is an issue of some companies got the too much of the wrong thing in the currently in their stores in particular everything that we di And that's gonna be a key issue that are gonna have to sell them off until them off heavily discount And especially expected to be a key issue again is we head into the holiday season DATE a critical season what do you think about the Nordstrom PERSON reaction that we're seeing after hours down seven% remember there was a lot of good news prices the stock after Macy ORG 's reserve results earlier it seems like that's being unwound in a big way and then some now alright folks as you've been to Nords About seven% the after hours into it though now with a gain of about four% so we'll follow them into the Wednesday DATE trade alright that's a wrap our cross platform coverage radio TV YouTube we call it beyond the bell we will catch you same time same place tomorrow Tim Stenovic PERSON on Bloomberg Radio Are ORG you listening and watching Bloomberg PERSON business week on this Tuesday DATE and I'm just watching these share prices here in the after hours TIME cuz we're seeing some big moves and certainly something will be probably be talking about tomorrow DATE but the big one I feel like is Nordstrom PERSON down about nine% Katie PERSON . Absolutely and again think about the rally Sort PERSON of the forecast there that downgrade and what they're expecting out of EPS ORG . Yeah, I think it's tricky is that
I didn't quite pan out for Nordstrom PERSON when you think about sort of the forecast there that downgrade and what they're expecting out of EPS ORG . Yeah, I think it's tricky is that I think we talk about it a lot here at at Bloomberg PERSON is that especially when it comes to the retail sector not everything is alike and we've talked about the wealthier consumer and high end you know retail seeming to hold up better and I would say that Georgeton PERSON plays into that but again if you've got your inventory levels wrong you don't have what customers want Be a problem. As of today DATE 's Heading into the clothes but that could change. Yeah. After hours TIME reaction. Yeah. About 10% PERCENT . Alright, back to world the national news, back to Nancy Lyons PERSON in DC GPE . Hey, Nancy PERSON . Thanks, Carol PRODUCT . Two CARDINAL men face life in prison after being convicted of conspiracy to kidnap michigan governor The verdict came after Jerus heard more than a DATE week DATE 's worth of testimony in the case against Adam Fox PERSON and Barry Croft FBI ORG assistant special In charge David Porter PERSON says the man plan to take their political disagreements to a dangerous level You can vote your elected officials out of office. However Assistant special agent Porter PERSON both men do plan to appeal today DATE 's verdict. Twitter PERSON 's former head of security is filed a complaint with the US GPE government claiming severe shortcomings and how Twitter PERSON handles user data. The formal complaint alleged egregious deficiencies in Twitter Defenses PRODUCT against tackers and other lacks approaches to security. The washington GPE post first reported the claims which include out of date software prioritizing growth over reducing the number of spam accounts and executives with holding About breaches how lawmakers confirm the complaint saying they're already reviewing the disclosure and they're looking into what to do next in washington GPE i'm anymore as Bloomberg PERSON radio House ORG plans to make its long awaited announcement on student debt relief tomorrow DATE that's according to people familiar with the timing Said PERSON the announcement is not fully clear. It's being closely guarded. President Joe Biden PERSON 's decision has been long anticipated as he grapples with delivering targeted relief while weighing any fallout including on already rampant inflation. News 24 hours TIME a day on air and on Bloomberg Quicktake I'm Nancy Lions PERSON . Alright ORG , Nancy PERSON , thank you so much, Nancy Lyons PERSON in DC GPE . Right now, you're listing and watching Carol Master PERSON , Katie Griffell PERSON , Dumplinburg GPE business week, and just real quick rehash at two CARDINAL stocks on the move in the aftermarket. Share some JWN. We're talking 10 11% PERCENT this after the company and the big deal is what they had to say about fiscal year DATE revenue so the outlook they're expecting five to seven% in terms of growth they had seen six CARDINAL to eight% so right now they are looking for fiscal year DATE revenue they're looking Fiscal year DATE adjusted I lost my headline They moved it around here. Cuz the second quarter DATE was actually a beat when it came to revenue. So let me just pull it up again. In terms of fiscal year DATE revenue. They're cutting it. Physically physically your 22 CARDINAL adjusted EPS ORG . 230 CARDINAL to 260 CARDINAL . It had been what? 320 CARDINAL to 350 CARDINAL . So it's dramatic cut there. But tail to earnings again because we got into it after Over year DATE the estimate had been for ยข98 ORG so that If you look at the first quarter DATE forecast they do see adjusted EPS ORG $ 114 MONEY . To $ 120 MONEY . The estimate had been for $ one MONEY and Up over four% or so at this moment. Alright, so we're gonna watch for those companies certainly in the Wednesday DATE trade as Northstream is under pressure but into it is rallying in the meantime, a little light affair, maybe we all need it. On this Tuesday DATE in August DATE and late August DATE . I'll actually yacht. Once owned by Billionaire Dimitri Pompansky PERSON has attracted 63 DATE bids in Gibraltar GPE in the first ORDINAL public auction of an asset sees it's the start of the war in Ukraine GPE . We are talking about five CARDINAL decks, 72 CARDINAL m yacht, it was put up for After JP. It's a floating palace. It boasts an infinity swim.
One 1 million dollars MONEY loan tied to the vessel it's a floating palace it posts an infinity swimming pool plus a threeD cinema so we talked about right right after the war in a lot of seizure of Russian NORP assets but it is the first ORDINAL super yacht to be publicly auction Since Russia GPE 's in Beijing GPE of Ukraine GPE pushed authorities to freeze luxury vessels in ports around the world. Markets headlines and breaking news 24 hours TIME a day. This is a bloomberg PERSON business flash. So we had good news and bad news after the bell what do you want first the good news okay into it with numbers after the video please
So we had good news and bad news after the bell what do you want first the good news okay into it with numbers after the video Fourth quarter DATE adjusted EPS ORG beating estimates and shares right now higher by more than four% of the late session that said on now the bad news Nordstrom PERSON with full year revenue of forecast of a range between five% up to seven% up that's a little bit Below what the company saw earlier. They were forecasting in the last messaging of anywhere between positive six CARDINAL to positive eight%. So, I'm looking at the stock right now in the late US GPE session Down 11% PERCENT . Hey, okay. So, during the regular session, the equity market was kind of mixed. It was very light day of trading summertime DATE volume. We get that, we had some weekend economic news, sales of new homes down in July DATE for a six CARDINAL time this year DATE and US GPE business activity in the month of August DATE can tracking for a second straight month DATE but I think it's fair to say if you're betting These reports will in any way shift the fed ORG 's mission on fighting inflation with higher interest rates you may be mistaken because today we learned directors at two CARDINAL regional fed ORG banks Saint Louis GPE and Minneapolis GPE they wanted a rate high class month of 100 CARDINAL basis points so the 10 year DATE last coded in New York GPE at 306% PERCENT . We were up nearly Basis LOC points on the day DATE . In the regular session a half CARDINAL of one% That is your Bloomberg GPE business flash. Always something. Keeping us on our toes. Alright, Doug Crisner PERSON , thank you so. Alright you are listening to Bloomberg GPE Business Week Carol Master PERSON along with Katie Greifeld PERSON well last week DATE John's Hopkins ORG joined and Permanent day DATE , NBA ORG star, Andre Iguadala PERSON , and others in an 80 1 million dollars MONEY series be funding round for incredible health, pushing the company into unicorn status. So, here with us on the funny race and really an update on her world, we will come back Doctor Iman Abuze PERSON , she's CEO and co-founder of incredible health, a frequent guest Here on business week and we do like to remind our audience that her company is all about connecting hospitals with nurses and other health care workers and she joins us on the phone from Austin GPE , Texas GPE on this Tuesday DATE . Doctor Abuze, nice to have you here with us. How are you? I'm doing well. Thank you so much for having me. Alright, we gotta talk about this funding raise. Really impressive. You're now a unicorn. Some really interesting people who are involved in that funding raise. What does that mean for you? Alright so it means that we're now the highest the highest values that enables career marketplace for healthcare workers in the US GPE today our valuation is about one. 65 billion CARDINAL for the first ORDINAL time we've had our customers Hey Facebook Which really positions us as the leaders in in healthcare hiring So maybe an obvious question but this latest round 80 1 million dollars MONEY what will you be using the money on? Will you send the money in three CARDINAL C areas first ORDINAL to an R&B ORG you know so investing in the hiring workflow and automating it with machine learning technology Automating the screening, automating the matching, just so it's increasingly more personalized and more automated for both the healthcare workers and the employers. We're also gonna be investing in career resources for nurses. And so they're using us over the course of their entire career. That includes still growth, scheduling services, Educational scholarships, cross training, all which is completely free of charge for for nurses. And so we are the place where the manager of Korea GPE and then frankly just, you know, expansion, you know, expansion beyond her group. And beyond hospital Doctor Abuze step back I mean I gave a quick brief description of what you guys are doing but really explore the the platform with our audience to remind them exactly what you are doing who is on it how many Well, I'm really the growth that you are seeing month to month Sure hospitals and other health care employers that use incredible health custom matching technology to hire high quality permanent nurses in less than 14 days DATE instead of the industry average of 80 CARDINAL Hey And average of
Hey Two 1 million dollars MONEY in travelers cost overtime cost in HR cost and then there's reviews in our platform An average of salary increases about 15% PERCENT and reductions in commute time I guess it's over the last year DATE in 2021 DATE we do top line revenue over 500% PERCENT we've now expanded to over 600 CARDINAL hospitals across 25 CARDINAL states we work in very large health systems including HDA health care and kind of Medical centers like Stanford ORG to sign in Sean Hawkins PERSON and we have over 10 1000 nurses joining our platform every single week DATE . And that industry average of 82 days DATE which you've shortened to 14 days DATE how does 82 days DATE that average now compared to what we've seen in the past I guess what I'm asking is did the pandemic Read that has that average grown longer? The pandemic has definitely exacerbated that number so that average house gotten longer because we are sick continuing to face the various severe labor shortage in nursing and as well as other healthcare professionals and then the other team number that pandemic Turn over you know the average turnover for nurses in the US GPE was about 17% PERCENT before the pandemic is now on average 21 and a half percent DATE Well tell us all about i was talking to somebody within the nursing community and just said Monkey PRODUCT pox you name it Individuals, man, people who are in the nursing field, have just kind of had it. Have we lost or how many have we lost from this field? So we are increasingly losing nurses from this field so our third ORDINAL annual data report from earlier this year DATE showed that one third CARDINAL of nurses are considering meeting the profession permanently by the end of 2022 DATE and so this is a workforce that has been negatively Some cases you know decimated by the pandemic they are being overworked And and and experience the extreme fatigue and stress and burnout at the moment And how do you how do you address retention than if you know burnout is such a big issue? Hey couple key ways first ORDINAL you know are the employers using our platform enjoy a 15% PERCENT increase and within their baseline retention rate Able to consider multiple opportunities before selecting that specific employer. But you know, we also, you know, in our surveys, in our data shows The top reasons why nurses are changing jobs. By far the number one is career advancement. They're looking for more career advancements. They want motor skills, move into leadership, cross train, become more specialized, and so the hospitals and health assistants that are investing in career dance at Are enjoying better retention rates too. Doctor Abrazade we only have about 25 seconds TIME left here. What's the end game for you? Do you go public? Does an Amazon ORG buy you? Just quickly any thoughts? Ultimately, our goal is to go public. We are, you know, or we are stand alone building a legendary company with division of helping healthcare professionals with that lives and ambition of helping you do the best work. Well, always good to get an update from you, Doctor Iman, Abuze, co-founder, chief executive officer of incredible health, joining us on this Tuesday DATE on the phone from Austin GPE , Texas GPE This is Bloodberg PERSON .
Broadcasting live from the bloomberg interactive broker studio in New York GPE Bloomberg 11 three oh DATE to Washington DC GPE Bloomberg PERSON 99 one CARDINAL to Boston GPE Bloomberg 1061 DATE to San Francisco GPE Bloomberg 960 CARDINAL to the country series XM PERSON channel 119 CARDINAL and around the globe the Bloomberg PERSON business In Bloomberg Radio ORG . Com. In just a moment. In the meantime, let's get back to your top business stories cuz I'm looking at toll brother It's down about one and a half CARDINAL percently after hours TIME . So can you tell me about it? Go ahead. Hey portal no. Well With tall brothers when I'm finished. Okay, is that fair? Yeah. Alright, into it after the bell with adjusted EPS ORG for the last quarter DATE that was above estimates, the stock right now has popped about four% in the late US GPE session. We were talking earlier about Nordstrom PERSON essentially the company has cut its revenue forecast for the full year DATE and shares in North GPE from right now are down 13% PERCENT . If you look at the E mini futures contracts now for the American NORP market S ORG and P 500 CARDINAL Nasdaq 100 contracts all moving lower after a down day DATE for the equity market it began with some week DATE economic news sales of new homes in July DATE down for sixth ORDINAL time this year DATE and US GPE business activity in the month of August DATE contracting for a second straight month DATE It's also important I think to point out what we learned two CARDINAL directors or at least directors from two CARDINAL regional fed ORG banks one being Saint Louis GPE the other being Minneapolis GPE they want wanted past tense a right hacked last month DATE of 100 CARDINAL His point. Treasury ORG . Last quarter DATE just around 3:06% PERCENT . The Dow off a half CARDINAL of one% today DATE . S and P down two tens CARDINAL of one% ORG . Nasdaq ORG comp flat. I'm done with the data check. Carol PERSON can talk. Told brothers if she'd like. Go ahead. Thank you so much. Forgive me. Tell brothers by the way down about four% in the after hours Doug Krisner PERSON . And I'm looking at some of it's outlook. The company talking about fiscal year deliveries now DATE . 10 1000 to 10300 CARDINAL . It had seen 11 1000 CARDINAL to 11500 CARDINAL . So it does look like it's raining in maybe perhaps some of the So we'll continue to track that one into the Wednesday DATE trade. So much. Alright, Kelly and I and really everybody at Bloomberg PERSON , we've been talking a lot about health care lately. The industry, the companies, government policies, legislative initiatives, in keeping with that this next company came to our attention. Respiratory ORG is cause itself a platform biotec company with a focus on aerosol So, let's get him to explain it prank quickly. Was the CEO COO ORG of the companies? He was named CEO of Respira Technologies ORG just last week DATE . He's about 16 years DATE at ultra group, 7 years DATE as presidency at Altria PERSON 's smokeless and innovative products and vapor businesses and Brian PERSON joins us via Zoom PERSON from Virginia GPE , Brian Myself PERSON how are you? I am great. Thank you for having me both. So, hey, listen. I think a good starting point is your your company and your key product. RX I'm not sure if I'm saying it correctly tell us a little bit about what you guys are doing. Sure. No, thanks again Caroline Katie PERSON . So, respirate is adventure bat health technology company focused on commercials, commercializing a proprietary inhalation based, drug delivery platform to help improve patient outcome And that platform has the ability to help improve outcomes across the host of indication areas but currently, we are engaged with FDA ORG cedar which is the center of
But currently we are engaged with FDA ORG cedar which is the center for drug evaluation and research to be approved as the first ORDINAL inhale prescription smoking cessation therapy To help the 20 1 million QUANTITY smokers who try to quit every year be more successful in their quit attempt. So, I need you to break that down for me a little bit more. Inhaled therapeutics for smoking cessation. So, are people inhaling nicotine for example? How does that work? Rap so when you when you talk to the smokers who are going to quit every year almost 60% PERCENT of the smokers in the United States GPE want to quit the number one CARDINAL way they choose to quit is cold turkey but they do have some therapeutics that they can use some of the over the counter gums and patches and also some of the pres Prescription medicines as well. Help people try to mitigate their symptoms but the issue is it doesn't deliver the nicotine to the body fast enough the way that they're used to what they're cigarette This will be prescr Only. To go through a regimen where they replace smoking with using this device with a inhale and aerosol That is created by using no heat therefore there's no thermal byproducts and they're only getting pharmaceutical grade nicotine as part of their pharmaceutical drug product to help alleviate them with pearl symptoms And hopefully give him a better chance of being able to actually quit. Alright, I know Brian PERSON that there's a bunch of people who are listening or watching us on YouTube ORG or saying, okay, so how is this different from an E cigarette or a jewel or vaping? So, what is the difference? 100% PERCENT . So, the the fundamental difference is really how was the aerosol created? So, each cigarettes, you all use different versions of heat-based technologies to heat a liquid and that liquid will have nicotine and other ingredients as well And and that aerosol can then be inhale. Our device because it uses in essence and innovation off of legacy vibrating vibrating mesh nebulizer tuck Creates PERSON an aerosol without the use of any heat So the fundamental differences when you heat a liquid or any cigarette although it is absolutely has fewer toxic against that a cigarette That technology would not meet FDA ORG cedar standard of safety because there are still Exposure to harmful compounds whereas in our device Because it utilizes no heat you're really delivering only the pharmaceutical drug product into the one with no other harmful compounds or exposure percentage so that's the fundamental so you're saying that when we use your device if you're trying to quit smoking you're not getting any of the nicotine or anything into your body none at all. No you you are delivering the nicotine so it's delivering the nicotine but none of the other by products that are created with a legacy cigarette To create the arsenal Just some fundamental differences there but who who do you view than as your competition? Is it a jewel? I mean, really, I viewed as our competition is Everybody in the landscape who is playing in this tobacco market It's an 80 1 billion dollars MONEY market in the US GPE Kind of our focus is first ORDINAL and foremost to focus on those smokers the 60% PERCENT of smokers who every year say they want to quit but ultimately fail right it is when you talk to them The burden they feel I think we've all had experiences of people we know and love who struggle with the addiction of nicotine but it is an incredibly tough task to be successful in quitting. So ultimately our goal is to bring this therapy. Have it be authorized. Have it be prescribed. Remember the care of a patient. Under the care of a doctor for the Which we believe will have significant impacts on the on the positive endpoints and helping save millions CARDINAL of wives and helping people stop smoking forever. Alright, we're gonna continue this conversation. We are talking with Quickly he's the CEO of Respira Technologies ORG joining us via Zoom PERSON from Virginia GPE we'll get back to him in just a moment in the meantime we do wanna get another update on World of Nashville ORG news for you on this Who is dancing?
Knowledge is doing a sphere zoom from Virginia GPE will get back to him in just a moment. In the meantime, we do wanna get another update on World of Nashville ORG news for you on this Tuesday DATE . Here's Nancy NRDC PERSON newsroom. Hi, Nance. Thanks, Carol PERSON . The US GPE is warning Americans NORP to leave Ukraine GPE over fierce Russia GPE could launch a new round of a tax against Ukrainian NORP government facilities. Ukraine GPE is preparing to celebrate its independence day tomorrow DATE . President Balatamire Zalinski PERSON says Russia GPE quote, may try to do something particularly nasty. Former President Donald Trump PERSON has filed a federal lawsuit seeking appointment of a neutral third ORDINAL party to review materials seized by the FBI ORG during a search for classified documents that is Mar a Lago Estate Bloomberg PERSON Washington GPE Correspondent Joe Matthew PERSON has more. The legal analyst we're speaking with say this may not go very far. The DOJ is likely already begun going through these documents and they have a special team of filter team or a taint team as their known that goes through and remove privilege material before prosecutors get to see it. So, this may be a stalling tactic, a delay Tactic LOC but it may not really change the trajectory of this case. Bloomberg PERSON , Joe Matthew PERSON , Tennessee GPE 's former Republican NORP House ORG Speaker Glen Casada PERSON and his top aid have been arrested on federal charges Bribery kickbacks and conspiracy to commit money laundering with federal funds the 20 CARDINAL count indictment alleges the man created a mailer company and a fake persona to receive state funds A jury has convicted two CARDINAL men of conspiring to kidnap michigan governor Gretchen Whitmer PERSON in 2020 DATE and a plot that prosecutors described as a rallying cry for a US Civil War by anti government extremists It was the second ORDINAL trial for Adam Fox PERSON in Barry GPE Croft Jr. After a jury back in April DATE could not reach a unanimous verdict. Global news 24 hours TIME a day on air and on Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and More than 120 CARDINAL countries. Nancy Lyons PERSON . Alright, now thank you so much. Right now, you are listening and watching on YouTube ORG , Bloomberg GPE , business week with Carol Masterlaw PERSON , Katie Greifeld PERSON , Katie PERSON and for Tim Stanovic PERSON , on this Tuesday DATE and you know this name, John Door PERSON , his adventure capitalist, he invested early in Google ORG and Amazon ORG . Well, the planner perkins chairman is tonight TIME 's guest on Bloomberg Wealth PERSON with Rubenstein PERSON that airs at 10 PM Wall St TIME time on Bloomberg Radio ORG and in this excerpt from the interview Explains how he made the wrong decision not backing Elon Musk PERSON . We had the choice of Backing a brilliant card designer by the name of Henrik Fisker PERSON More ambitious slightly crazy entrepreneur by the name of Emon Musk PERSON contest Rob PERSON removed the wrong decision But Tesla did very very well and so did electric vehicles. That of course is Clenner Perkins John Door he is tonight TIME 's guest on Bloomberg Wealth PERSON with David Rubenstein PERSON you can hear more of that interview on Bloomberg Wealth PERSON tonight TIME at 10 PM TIME on Bloomberg Radio I ORG mean listen Door ORG has had an incredible Record to compensate maybe for missing out on Tesla and Elon Moskey PERSON took early steaks and some of the world's most successful companies, Twitter ORG , Amazon ORG , Google ORG , Parent GPE , Alphabet GPE , more recently, his invested and start up such as the delivery service store dash, software company into it, which Talked about reported earnings and has been rallying in the after hours TIME and health tech firm lumerous. Absolutely I you know I think about the early days of two CARDINAL with Kathy Wood PERSON and backing shoes out there front center when it comes to Elan Musk PERSON and Tesla when a lot of people were running in Other direction. So, it's kind of interesting to see how that has played out. He did mention into it which we did mention, did reported turnings after the closing bell and his continuing to trade higher Katie PERSON . It's up about four CARDINAL percently after hours TIME . Yeah, pretty dramatic move And contrast that with what we heard from Nordstrom Tale LOC to earnings who once again. Alright, we'll check out Cliner Perkins John Door PERSON tonight TIME at 10 CARDINAL on Bloomberg Radio ORG with David Rubenstein PERSON upload wealth. This is Bloomberg Radio ORG
Markets, headlines, and breaking news 24 hours TIME a day@Bloomberg. Com, the Bloomberg Business app ORG . Let's begin with some of the news after the bell toll brothers earnings for the last quarter DATE beat estimates however the company has cut it's delivery guidance for the full year DATE right now shares in toll are down by about two CARDINAL . Seven% we also heard from into it after the bell the companies adjusted EPS ORG for the last quarter DATE And shares right now higher by nearly four CARDINAL . Four% big disappointment for Nordstrom PERSON the company cut revenue forecast for the full year DATE Nordstrom ORG shares down by nearly 13% PERCENT in the late US GPE section
Big disappointment for Nordstrom PERSON the company cut revenue forecast for the full year DATE Nordstrom ORG shares down by nearly 13% PERCENT in the late US GPE session very light volume in the regular session summertime trading equity market finished mixed Nasdaq Energy ORG one of the bright spots energy prices or shares I should say tracking the price of crude oil higher Saudi Arabia's GPE oil minister recently raised the possibility of reducing production as a way Balancing the crude oil market WTI in the extended session right now up by about three CARDINAL . Eight% ORG were trading Just around 9385 10 year DATE treasury ORG up nearly four CARDINAL basis points in yield given some little concern about the aggressive nature of the fed ORG in tightening even in the midst of week economic news we were last quoted on the tenure and yield terms at 305% PERCENT . Bloomberg PERSON business flag. So now, you wanna do 12 CARDINAL brothers, huh I did now only because Read me to it And to be honest I wasn't up to speed on it now I am in a better position you like that transparency hold disclosure you are the most earnest we just one of the many reasons we love you Doug Kristener PERSON Alright Doug PERSON thank you so much Carol PRODUCT Master Katie Greifield we are live in the interactive broker studio here at Bloomberg GPE headquarters in New York City GPE wanna get back to our guest cuz Katie PERSON and I have been talking with Brian Quigley PERSON he is the CEO of Hey Sarah Via Zoom from Virginia GPE hey Brian PERSON what are the things I'm curious about and you mentioned that you've applied the company for FDA ORG approval to be Inhale ORG I'm not gonna say it correct inhale therapeutics for smoking cessation if you don't get the FDA ORG approval is there still a company Absolutely there is. I mean, there are there are host of all those other in health therapies that are device technology can help deliver improve patient outcomes. There are over 90 CARDINAL therapies today DATE that are approved for delivery through a legacy vibrating Which has occupation compliance due to the lack of patient maintenance and cleaning of their devices. So, there's a there's AA huge opportunity in the already approved therapeutic space but also working with companies who are developing new therapy To be delivered to a patient via route of inhalation just as a just as a beginning. And let's talk about growth. Have you raised money at this point or is that something you're exploring? We have raised capital actually in in 2022 DATE in this very challenging environment where very close to closing out our a round and will be announcing that in the next you know 30 to 45 days DATE and and that funding would be able to secure Help the company achieve its next milestone which is it's I and D meeting with the FDA ORG and our phase one CARDINAL human clinical study. So what's kind of the role that what's the timeline here? I'm just thinking Audience PERSON who's listing in on this cuz it does sound like there's a lot of potential but I am curious about the timeline. Yeah and you know the the new the new drug approval process is not for the Phantom Heart but you know in our case you know working with FDA ORG you know this is something that we know is a high priority for them we know they're gonna hold us to task and we're gonna be science based so we're generating the data to to move through the process but ultimately we'll In our phase one CARDINAL human clinicals next year DATE which will lead to a phase two CARDINAL and three in our goals to be authorized in 2025 DATE . I do wanna switch gears a little bit and talk about cannabis because I see in your bio that you've been inactive investor in both the cannabis and alcohol Is you sit on the board of Musgrove biologics and bell aisle craft It's obviously FDI ORG when you think about regulation for cannabis at the federal level it's been really stop and start it feels like a sort of white whale of sorts just very curious to hear your views on that industry Yeah I mean here the cameras industry it's I think it's it's been through a lot of challenges you know at this stage you know I don't know much but I do know one thing that Legalization ORG or descheduling eventually does.
I think it's it's been through a lot of challenges. You know, at this stage, you know, I don't know much but I do know one thing that When legalization or descheduling eventually does occur the one thing that's gonna happen a day before that is FDA ORG will regulate cannabis whether it be from medicinal very regulate from medicinal products but for consumer products as well Clarity and consistency from a label and quality perspective you know and and I think that you know technology is like ours that don't use heat in an FDA Environment ORG , have the potential to, you know, even look at delivery of of cannabinoids for medicinal purposes or an FDA ORG regulated contact Well that's what I'm trying to understand Brian PERSON like ultimately how do you see this business playing out if you go to the Bloomberg Terminal ORG we have a DES page and often we have a revenue you know breakdown for any particular company about kind of Where, you know, the revenue breakdown. Where we're seeing the most sales within a particular companies business and I am curious, is it smoking cessation? Is it actually, you know, helping maybe with people who have various, you know, illnesses where they need pharmaceuticals, kind of your plain vanilla pharmaceuticals Fed ORG to them. Is it the cannabis industry? Is it where do you see it breaking out You know I think the I think I see the the nicotine replacement therapy side of our business being AAAA huge driver of the revenue to see the size of the market there the the number of people who continue to smoke cigarettes and who are dicted and who are looking for solutions is is going to be the driver Avenue ORG . I believe for the first ORDINAL , you know, 5 years DATE and because We have IP on our liquid drug product that contains nicotine We will be able to reap the full financial benefits of that whereas in the other and health therapy spaces you know there that will really be through partnership with companies who have been working to identify develop and new new molecules or or new therapies so I I really do think that for You know 5 years is going to be the key driver of a revenue but I also think that we we see there's opportunity for for us to be a blockbuster drug once we get authorized you know what do we ask for leaders of all types of in And companies. I mean, are you giving supply chain problems in terms of building your product out? What are the restraints and are you at all nervous about a slow down that for something that's kind of something in the future might that be For you. Yeah I I think all businesses are having to deal with supply chain challenges you know in our case because really you know the device itself really is an electronic device so you know luckily text me There are few chips in there, batteries, and but luckily, you know, we work with JB and Rick PERSON and Radius there, innovation arm, who is our med device contract manufacturing arm and they help us manage supply chain. So, you know, I think with anything with proper planning, it can be managed. You know, at an RKS because you know, we Very methodical plan we have to execute FDA ORG we're able to manage managing the supply chain risks pretty effectively And just about 30 seconds TIME you are a clinical stage company walk us through the next several years DATE for your business you What are the next 4 or 5 years DATE look like for respiratory in about 30 seconds TIME The next 4 or 5 years DATE are are continue to engage with FDA ORG and execute our clinical studies to get the NRT NRT authorized and in that process be engaging with the pharmaceutical companies for partnerships to not only scale that but also scale new therapeutics. Alright, can you leave it on that note? Brian PERSON , thank you so Look forward to hearing more in the future Brian Quigley PERSON he's a chief executive officer of Respira Technologies ORG joining us via Zoom PERSON from Virginia GPE alright that's gonna do it for the Tuesday DATE edition of Bloomberg Business Continue ORG to watch some stocks on the move in the after hours and two TIME it is up about five% following earnings toll brothers is down about three% following earnings in Nordstrom Katie PERSON is down almost 13% PERCENT out Earning season continues to give and to take and it's been really interesting to follow. Alright, everybody. Have a safe and good evening TIME . This is Bloomberg PERSON .
13% PERCENT out It's been really interesting to follow. Alright, everybody. Have a safe and good evening TIME . This is Bloomberg PERSON . Hey From the heart of where innovation money and power collide. Former head of security has come forward alleging there are egregious deficiencies quote unquote and how the company handles personal data and doesn't even know how many bots there are US GPE lawmakers have vowed to invest How this plays into the 44 1 billion dollars MONEY lawsuit. Pause zooms transition from an essential pandemic toll to an enterprise business juggernaut might take Than expected. The company reported the lowest sales game and it's history zoom CFO ORG joins us this hour TIME . Hey.
Might take longer than expected the company reported the lowest sales game and it's history zoom CFO ORG joins us this hour TIME . And matter learned about the FDC ORG 's lawsuit over its within VR acquisition via a tweet. Could this be the new norm under chair? We will get to all of that in a moment but first ORDINAL the third ORDINAL down day for the markets in a row Bloomberg PERSON 's Katie Greifeld PERSON with us now Katie PERSON walk us through the day third down day DATE but it was a pretty mixed bag overall if you look at the big benchmark to the S and P 500 the Nasak 100 CARDINAL falling slightly just a few tenths CARDINAL of percent then you look at the Philad PERSON Semi conductor index the socks really the big outperformer today DATE up seven tenths of a percent CARDINAL but that was really just a bright spot and what was the sea of red you look at some of the Corners of the market. We have the arc innovation ETF up there down about half a percent PERCENT . So, as we sort of just wait for the big news at the end of the week DATE , of course, the federal reserve Jackson PERSON whole summit, Silva GPE few days to go. Let's look though at the meme stock craze check in on that craze but in a different way now, you can see bed bath Over the past 4 days DATE again we think about where we were this time last week DATE it was a much different story but That seems to be a thing of the past just for now again if you think about what we're seeing in bed bath and beyond shares but broadening out to Fundamental stories. If you look at some of the other big movers in the market, somehow, it's still earning season. We heard from J. D. Com PERSON earlier. Today DATE was a beat and a race quarter. Sort of quieting some of the fears that we've been having about the Chinese NORP slowdown when we think about What we saw at Ali Barber JD PERSON . Com shares up over three% GPE we also Yesterday DATE again really strong billings numbers that was reflected in shares today DATE 's soaring by more than 12% PERCENT Twitter though this is where all the drama was today You walked us through that whistleblower emerging perhaps a win for Elon Mosque ORG of course mosques lawyers have already issued a subpoena requesting that whistleblower. Drama indeed Katie PERSON thank you we're gonna talk more about that right now Twitter PERSON 's former head of security blowing the whistle His name is Peter Zatko PERSON . He's filed an official complaint alleging egregious deficiencies in the way the platform Twitter PERSON refuting the claims calling them opportunistic how could this change Elon Musk's PERSON attempt to get out of that Four 1 billion dollars MONEY deal Here to discuss Bloomberg PERSON 's Jeff Feli PERSON who covers the court Who covers Twitter PERSON so Kurt PERSON who is Peter Zachko PERSON and what has he claimed yeah this is someone Incredibly well respected in the security industry. He came to Twitter PERSON in late 2020 DATE , you may remember Emily that in the summer of that year DATE , there was a Breach of the company a bunch of very high profile accounts were hacked by a teenager and Jack Dorsey PERSON then the CEO you know made a big plan to bring someone in with some real kind of reputation and and stock in the industry and so his you know goes by mudge his nickname and he was there Until early this year 2022 DATE when he was actually fired or dismissed by CEO Prague Agarwal. So, very recently in the building at Twitter PRODUCT . So, he was there very recently. Twitter responding to his claim saying, this is from the the CEO. I believe you obtain this They're reviewing the claims but what they've seen so far is a false narrative. Right. Riddled with inconsistencies and inaccurate inaccuracies and Give us more details on what he is claiming I mean he's he's essentially saying that the company has not taken the appropriate steps to protect user data You've seen that they haven't taken appropriate steps to update, you know, basic software on their data servers, right? And the big thing and this is the thing that, you know, you're on musk Is jumping on is that he says well the company doesn't actually know how many bots it has on the platform right it's a little bit more nuanced than that we can get into that but generally you know when you hear that in your Elon Musk PERSON your ears perk up because this is what you have been arguing all along is that the company doesn't Essentially reaffirming what Elon ORG 's been saying. So, How could this potentially
Senior executive who reported to the CEO essentially reaffirming what Elon ORG 's been saying. So Jeff Musk PERSON floors have already said we wanna talk to this guy. How could this potential What's gonna happen in this hearing? Well, first ORDINAL and foremost, let's let's stop for a second ORDINAL and say that it's way too early to know whether this guy's got the goods or not. You know people are gonna have to dig in and see Whether there's meat on the bone for these allegations Now tomorrow DATE is not about the the this guy it's about That the most people have made that the Twitter PERSON folks are hiding Witnesses were specific knowledge of the spam and the body counts and they're offering up you know executives and directors who don't have Judge is gonna decide whether or not Twitter PERSON has to make you know The people with the goods available So Kurt PERSON I know you've been talking to a lot of sources. There's been some reaction from within the company. What are people Yeah I mean there's a number of current employees you can imagine aren't very thrilled right to see someone who is so recently on the staff level at the company now coming forward and making these accusations there's been a lot of speculation as to the timing right I mean we are right in the middle of this very content Deal and suddenly this feels like a huge wrapped gift for you on musk. So, there has been speculation there as well but you know, ultimately, this just adds even more kind of chaos and confusion to what's already been a very uncertain time at a company like this. Just, how often does it happen that, you know, someone comes forward, claiming to have, you know, You know at the perfect time in a high profile business case like this. Acorn for senius So, it's not unusual to have whistleblowers emerge when there's publicity about these big M and A fights. And it's just, you know, everything has been, you know, drama central in this case. So, it's not a bit surprising That we've had So why don't we what are you watching for what happens next? Well again we have this hearing tomorrow DATE Which will decide whether or not he gets more access to the bot stuff Forward we're basically keeping an eye on the process of gathering ammunition both sides are gathering ammunition to make their case And we're hurdling toward October 17 DATE . The huge, you know, In Wilmington Delaware You are gonna be very busy that day my friend along with our own Kurt Wagner PERSON thank you both Thank you both obviously you'll keep us posted on Drama GPE . HBO ORG gets a huge win with house of the dragon just how good an omen is this for streamers we'll discuss This is Bloomberg PERSON .
The Game of Thrones fan club was in the house sunday DATE for house of the dragon the premiere June 9 DATE . 9 million CARDINAL viewers on television and online making it the best ever Series EVENT debut in HBO ORG history. It's Between HBO ORG and Amazon ORG which is about to debut it's Ring's been off. The rings of power. Joining me now at Greenfield PERSON partner. Partner. So, how's the dragon? What did you think I mean, this is sort of, this is what HBO ORG does best. I mean, Super expensive. Tens of millions of dollars MONEY in episode. But this is the bread and butter of HBO ORG and I think that the big question for investors is gonna be how does this evolve over the course of the next 12 months DATE As you know, Emily, Discovery PRODUCT Plus is gonna basically be you know mashed together with HBO ORG Max PERSON probably still called HBO Max ORG and we're gonna see sort of how those two CARDINAL brands come together into one service When you look at something like house of of the dragon this is this is everything at HBO ORG is known for over the last 20 years DATE you know incredibly well produced high and premium content Well, we're already seeing some of those growing pains as this you know, discovery tries to These two CARDINAL cultures what's your Expectations about how it's all gonna play out. I've been looking you've got a company you know the reality is for discovery. This was a say, right? I mean, discovery we did not have a future as a standalone company. They were gonna be in deep trouble, just being in the cable network world. Especially in the non-fiction sort of that world was not going to look pretty over the course of the next 5 to 10 years DATE . And I don't think anyone really Really unique opportunity for sort of a kick save for John Malone PERSON and David Zaz PERSON left the sort of wined up being in control of one CARDINAL of the world's largest media companies the negative is they have Strategically but I think the question is gonna be this is an incredible group of assets and how much of their Building for the future. There's no doubt in my mind that the future of television is gonna be streamed, right? Like linear TV ORG is dying and so, how does one CARDINAL immediate which still has a tremendous amount of cable network, you know, broadcast, cable network assets? How do they transform that into the And can they do it with that much debt load obviously you're seeing a lot of investors who are skeptical of their prospects so far? Does the successive house of the dragon boat well for Amazon ORG 's Lord of the Rings ORG project and all the money and time that they spent on it? Well, I think it's it's funny that you bring up Lord of the Rings because it's actually a great example of the different strategy that you're now
That they spent on it. What? Well, I think it's it's funny that you bring up Lord of the Rings because it's actually a great example Warner Brothers ORG discovery I should say versus the old management team because if you go today Emily or if any of the viewers who are watching this Turn on amazon ORG 's you know prime video they can actually watch all of the original order of the rings now you'd say the original order of the rings those are Warner Brothers ORG those should be on HBO Max PERSON and they're on HBO Max PERSON but they're now also on Amazon ORG 's prime video so you see this culture now that's Changing inside of Warner Media LOC where instead of making it the exclusive home of content they're really going back to more of a licensing model where sure it's on HBO ORG match but now you can also get it on To generate profits versus the only sort of north star Streaming meeting HBO ORG Max HBO Max PERSON is no longer the sole focus of one CARDINAL brother's discovery they're looking to make money anyway possible including licensing the third ORDINAL parties like Amazon ORG We're also seeing the streamers make more moves into sports news today DATE that Amazon ORG is gonna show it's Thursday DATE night TIME football and bars and And you know you talked about you know for the first ORDINAL time ever they're being more viewers on streaming than on cable is sports really the only way to take these streamers to Next level to that next generation or chapter of growth Oh, sports is a great way to get people to come in, right? If you have champions league, which is what Paramount ORG Plus just acquired, it's the only way you can watch Champions League ORG as you Peacock Yo PERSON if you you know each of these platforms is buying exclusive sports rights now that the negative is obviously you can't you don't own these you don't own the content. You have to keep fighting every 357 CARDINAL , whatever the years DATE are. You have to keep fighting for this content cuz you don't own it the way you own a piece of content your Netf Own stranger things forever like it's not disappearing. They don't have to go rebid for those rights in 3 years DATE . So, sports is a really a double edge sword but I think what's interesting Emily is it's the last thing that's been holding the bundle together Traditional television that anyone cares about. The only thing that's sort of holding the sport or the traditional multi-channel video bundle together has been sports and Seven CARDINAL eight% now port cutting is becoming a real problem for all of these legacy media companies because they move so much great content including Tech ORG companies are coming in and bidding on these sports rights. You know, we think the big next thing you're gonna see in the next 4 weeks DATE , we believe apples gonna buy Sunday DATE ticket which has been on Direct TV ORG For years DATE we think that moves over to Apple ORG and so you're seeing real massive seismic change that is gonna have big problems for anybody in the cable network business in 2023 DATE . Now I know you're a prolific Twitter PRODUCT and we were speaking earlier about this whistleblower that's come forward that Potentially give Elon Mosque ORG an edge in this battle royale to get out of that 44 1 billion dollars MONEY deal to buy Twitter PERSON what's your take? You know it comes down to essentially one CARDINAL fundamental issue Is Falseified ORG . Public farms because the deal that a one must agreed to. Didn't talk about bots or the percentage of bots or any of that. It basically just relied on the validity of Twitter PERSON 's public violence and if you read Twitter PERSON 's public filings, it says, you know, we make a lot of assumptions in how we look at the bot number. We think it's under five% but we could be wrong. If Twitter PERSON knowingly knew the number was far larger than five% and everyone of Twitter PERSON 's filings was essentially fragile because they were basically filing fraudulent documents.
Essentially fragile because they were basically filing fraudulent documents with the SN ORG Sort of the entire management team at Twitter PERSON has willfully for years DATE been filing false SEC ORG documents It's obviously possible. I think it's unlikely unless those documents unless those filings with the SCC are knowingly false. Twitter ORG has already said they could have madden mistakes and how they did this it's This is not an exact science. If that's the case, Elon ORG will be paying 54 20 DATE . Right and to be clear we're talking about the number of bots that advertisers that that that actually see advertising that are counted at MAUs not the number of bots overall that's what They're referring to with that five% less than five% number Correct it's there are certainly good bots that are part of Twitter PERSON that you actually would want there but in terms of sort of the the spammy part that shouldn't be counted as actually you know monetizable dia uses Twitter PRODUCT calls and MDA ORG uses actually the term Twitter PRODUCT uses They have said repeatedly that the percentage of bots on a quarterly DATE basis is sub five% based on their analysis but that analysis could be flawed. You would have to believe that they knowingly knew me they actually knew the number was north of five% That's the only way musk gets out of paying 54 20 DATE . Right, right, okay, Rich Greenfield PERSON , Leichhand Partners ORG . Thanks for asking to have you here, Rich PERSON , thank you Coming up zooms We're gonna talk about that. Zoom PERSON was the pandemic golden child but that transition from an essential COVID era tool to an enterpri Business platform may not happen as quickly as some expected. Let's talk about all that and more with Zoom CFO ORG , Kelly Steckelberg PERSON , here, Kelly PERSON , great to have you back with us. So, let's talk about the good news in the last good news.
As some expected let's talk about all that and more with Zoom CFO Kelly Steckelberg PERSON here Kelly PERSON great to have you back with us so let's talk about the good news in the last good news obviously you're seeing growth from enterprise customers but you're Consumers and small businesses. Let's start there. How and where do you expect that to stabilize? So, great to see you, Emily. Thank you. As you mentioned, we're really pleased with the performance in the enterprise which grew 27 CARDINAL year% over year. We can talk about zoom phone in the very strong performance there. But in our online segment of the As you mentioned, there were certainly we're some headwinds. A lot of it due to strengthen the dollar as well as impact that we're seeing from the war in Europe LOC but also just slower acqui Customers at the top of the funnel which is having impact is people are moving around the world again and going out to happy hour with their friends rather than doing that over Zoom PERSON . And slowing sales growth among corporate customers is that a sign of slowing corporate demand is that because of the macroeconomic So, we had a very strong quarter DATE from an enterprise perspective. Our overall bookings came in stronger than we expected and revenue at 27% PERCENT . Now, we are starting to see our enterprise sales cycles moving towards more normalized enterprise cycles which Little bit more back end loaded in the quarter DATE that led to higher than expected deferred revenue though just a little bit less contribution to revenue in the quarter DATE itself. Zoom phone was very strong performance. We crossed over that four 1 million QUANTITY seat mark in August DATE . We're excited to talk about we had two CARDINAL record deals with seat size of greater than 125 1000 we're seeing strength in some of our new products including Zoom PRODUCT contact center and Zoom IQ for sales. Bigger picture there's this narrative that the pendulum is swinging back to the office Apple ORG calling workers back to the office next month DATE employees are pushing back yes But you know, this is still the policy. At least as of now, I know Zoom PERSON did its own survey on hybrid work. You found that executive still want that hybrid work How are you adding all of this up and trying to figure out how this will translate into demand So the great thing about Zoom PERSON technology is it enables work both at home and in the office and they're both really important. So, we see organizations recognizing that they need to maintain their Zoom PERSON licenses for their employees that are working at home but also our technology like Zoom Smart PERSON gallery, workplace reservations, allow them to then interact with those employees that are in the office in a very inclusive way and so having the right technology in your conference room is becoming more and more important every single day. We've all come used to seeing everybody's face on a square and so Gallery enables that even if you're the one like me who I've moved out of the state of California GPE sitting in Texas GPE sees everybody that's in that room and feels really included in that conversation and so we're excited about the prospects of To work and Zoom PERSON technology is there to support it. So, just about 30 seconds TIME left, Kelly PERSON , what is the next year DATE of growth look like to you? Where does most of that grow Come from quickly. Certainly it's gonna come from our enterprise segment and we're also focused on lots of new initiatives in the online segment that will drive at first ORDINAL to being black but eventually a growth driver as well Alright Kelly ORG Stuckleberg CFO of Zoom always good to have you here Kelly PERSON thank you for stop Coming up. The FTC ORG is breaking with tradition, letting companies learn about lawsuits, the hard way without any notice that Take a look at the cyber security landscape with power auto networks and catch a This is Bloomberg PERSON .
Welcome back to Bloomer Technology ORG . I'm Emily Changing San Francisco GPE . The FTC ORG is breaking with tradition and it's clamped down on big tech. Has it learned that the federal trade commission ORG was suing the company over its within the virtual reality acquisition via a tweet? The FTC ORG typically gives companies a chance to meet with commissioners and argue their case before filing a lawsuit here to explain what happened are very own Alex Barenca PERSON what happened indeed Alex PERSON ? Apparently found out from this tweet that the FTC ORG was suing them in kind of an unusual case that I'm sure we can kind of talk about in a second ORDINAL . Basically, we typically happens in these situations as a video's large enough. They have to file documents to the FTC ORG which are sources told us they did Hundreds CARDINAL of documents and data points and then if a suit is imminent usually there are depositions before that happens. No depositions happen in this case. And the company was alerted to this via tweet. I will say the FTC ORG . Initially didn't comment on this story. They did get back to Today DATE saying that they follow typical practice by notifying the company after the fact that being said our sources say this was unusual to not have any incling that they would be
Follow typical practice by notifying the company after the fact that being said our sources say this was unusual to not have any inkling that they would be coming for them to sue to block this virtual reality deal. What is the signal about Chairperson Con PERSON is AA Biden PERSON appointee who was Brought into the agency that is meant to enforce anti-trust laws and she's taken a pretty aggressive approach. This suit in and of itself Basically means that they are suing to block this deal on the future Supernatural can actually tamp down competition because it doesn't give And the Democra Commissioners ORG on the FTC ORG against big tech companies I spoke with Congressman David Sicilini PERSON And asked him about Lena Con and her approach and this lawsuit in particular some critics have said this is such a small company wise the FTC ORG bothering bothering with this of course Said PERSON the deal would increase Take a listen to what representative Sicilini PERSON had to say I don't think we can take any representation made by Meadow or Facebook or Mark Zuckerberg PERSON seriously time and time again they've been found to be engaging an anti-competitive behaviors He went on to argue how much meta and Facebook in particular are anticompetitive and how supportive he is of Lena Khan's PERSON You know, of course, that's just one CARDINAL lawmaker but what do we know about the support that Lena Con PERSON has in congress ORG to continue? Yeah, you're out. You'll remember the house came out with a 2020 DATE report. Basically pointing out that Meta ORG alone had acquired more than 100 CARDINAL smaller companies in the decades DATE prior and this within case is Only time the FTC ORG has actually sued preemptively to stop one of those deals for folks like Sicily LOC know they might be looking at things like the ongoing back and forth that Regarding the Instagram NORP and WhatsApp ORG acquisitions that issue is also with the FDC ORG from Lena Cohn's GPE predecessor so I I think that folks on who take that kind Approach that that he was talking through there think that the FTC ORG perhaps hasn't done enough on the anti-trust side to make sure that these giant tech companies aren't basically hoovering up One CARDINAL out there to either camp down or assure that they have what they said in in this lawsuit is a monopoly on a potential future market Alright Alex Barenka ORG thank you for your reporting on this of course we'll continue to follow Now moving on to the world of cyber security shares of Palo Alto Network's ORG sword as much as 12% PERCENT Tuesday DATE after the network security company reported Portal By at least 25% PERCENT in fiscal year 2023 DATE but can the cyber security landscape will the cyber landscape sustain it's growth Great to have you back with us as always. So, look, very positive earnings report. A beat, good forecast, you seem to be bucking the trend because we've heard a lot of bad news from other tech companies. But Seeing noise. We're not seeing a signal out there telling us that There is impending doom like we see inflation, we see macro economic trends. 2 years ago DATE with a pandemic, people thought that that the floor was gonna fall away from under arrest. All the way to $oh. Revenue is vanished for companies So I don't think this one is as bad as that when it was 2 years ago DATE . Do you expect a man to keep up though or
Received a power through. So, I don't think this one is as bad as that when it was 2 years ago DATE . Do you expect a man to keep up though or could companies tighten their belts over the next A few quarters DATE and could that impact how much software in cyber security services they want to buy. You know, it was interesting. I've been talking to investors all day DATE and a whole bunch of market commentators about our stock and what we see in the market and the pandemic said about a series of transformations and technology because companies saw that there are wanting in many areas. They're e-commer Infrastructure ORG was not after snuff which they had to upgrade because they're trying to sell everything on the web. Customer in direction mechanisms were not in place because every customer wanted to interact with them This is only because they don't wanna touch people or see people anymore. So, a lot of technology, transformation, projects started in the midst of the pandemic. Even a whole bunch of the clouds transformation. So, and hybrid work. So, if you add all that up, the unleashed to series of technology transformations and couple that would be tremendous amount of Overactively seen on the awareness of that. So, we're seeing a deal when for security which is I think more secular and might get dented on the margin but I think it's still one of the safest and strong Access to be in. Overall, how would you describe the threat landscape right now? Obviously, there is this ongoing war on Ukraine GPE but the potential, you know, huge cyber apocalypse that you know, somewhere warning about with that hasn't Materialize there's ongoing tension with China GPE of course How do you how do you see these global factors impacting the threats Oh I think if you're still back and look at it you know everyone of our companies has become digital it's and every time you have digitally enabled businesses do you open the door for people to be able to enter Suddenly a tax service will be called it's Every employee's home is a potential attack factor. Everybody laptop is every every interaction that you have with your customers digitally is a potential way of you getting hacked and we've seen that. We've Ran somewhere spare. Every 4 hours TIME there's a On some website somewhere so clearly this is not just a nation state threat it also is an economic opportunity for small You know hackers or hacker groups just build consortium to start making sort of making these economic demands on a bunch of We're also we're perspective. So you're seeing the threat landscape get more sort of adverse. At the same time in a nation states are looking at preparedness because of the Ukraine Am I ready to stand in attack? We haven't seen a cyber security applics because we've actually had real lives lost and devastation caused in Ukraine GPE . However, do not underestimate the amount of cyber Trying to bring the UK GPE in websites down and you know Tremendous amount of cyber activity the activity we haven't seen before. There's a new whistleblower in social media and I'm just dying to get your thoughts on this. This former employee of Twitter PRODUCT , former head of security there claiming negligent Policies PERSON . There even are you know there's been some pushback You know the sounds like something that could be happening A lot of companies Take photo Know the particulars of the situation at Twitter PERSON I read about it probably just as recently as you did I don't know what's happening there I will say that one of the things we've been canvassing for and hoping for is more screwed Indian NORP more awareness at boards about the threats of cyber security I think cyber Is the biggest business continued risk in the 21st century DATE and I don't think boards are well prepared to understand the magnitude understand the impact that can be had and really to be able to assess whether they're individual company is up to snuff So I think it's it's a need of the hour I think the SCC is looking at various mechanisms to be able to create sort of regulation around how people have to disclose cyber activity and cyber readiness just the way we do In audit committees and finances that are Well, there's also this quote number that we've been hearing over again.
Cyber activity We do in order to finance etcetera Well, there's also this quote number that we've been hearing over and over again, 600 1000 CARDINAL Responsibility of boards but you know is it is it Who should be stepping in here to help fill these jobs? Is it comfortable? So I'm glad if it's 600 1000 CARDINAL It's a lot. We need to make sure that Cyber security enthusiasts or professionals I think the fundamental problem is we have not applied ample automation and security Which requires a bunch of clean data requires a bunch of integration of brand- four CARDINAL platformization for cyber security which is what we're trying to do in a whole bunch of others are I think the only way we sold this security If he can build a eye that actually stops these attacks whilst they're happening. The today DATE is model is not gonna work. Today DATE 's model is something happens. We collect all the data and large data lakes. Let me have people go attack them. Look at them to see Requires a lot more automation. We think we You also need more cyber security Hm now so curious for your thoughts on this last one here you of course were massiochi son's number two CARDINAL long before he launched the vision fund now we know he's lost tens of billions of dollars MONEY on some of these tech investment What do you make of this and what do you think the legacy of massa in softbank will be in spite of this? Oh you know Mar PERSON says a resilient individual. He's been through this before. He went from boom to bus to the last internet Boston GPE . He got a reinvented himself and the one thing I loved about him is that he has immense appetite for us. And his appetite Risk and his ability to forget his failures is what all of Silicon Valley LOC teaches us. So hopefully he can recover from that and go build it back himself. I think last time was down to a one 1 billion dollars MONEY . I think he's a lot more this time than last time. So I have faith in his ability to resurrect But yes I do think he got a bunch of companies at the wrong end. Alright Nakara CEO of Palato Network ORG it's good to have you back Nick Cash PERSON thank you for stopping by Alright coming up how the crypto winter DATE coupled with an energy crunch is impacting bitcoin mining more on that This is Bloomberg PERSON . Sorry.
Time now for our crypto report and the usually volatile Bitcoin PERSON has gotten stuck trading within a narrow range ahead of the Annual DATE Jackson Hall FAC meeting later this week DATE covering around $ 21600 DATE Mike Alford ORG board member of the Bitcoin ORG minor iris PERSON energy and the crypto focused investment firm Eaglebrook FAC advisors talk to Kaylee lines on the Bloombrook ORG crypto share Earlier to talk about the markets impact on Bitcoin PERSON mining. I certainly been a difficult time and I was with a bunch of the minors in Miami GPE about a month ago DATE now and you know the the mood's a little darker bit the bitcoin price being under 20 1000 CARDINAL obviously is in good for anyone because profitability tends to flip negative for a lot of the Minors around those levels. You know, the cost of machines has gone down though. So, if you're a buyer of machines here, you know, you're getting a much better price than you were a year ago DATE . And energy prices while they're going up, they could certainly you know, be held down a little bit by by macro, uncertainty, at least in the US GPE , where they're sort of an over supply. Of energy. So, I actually believe just On the hash ribbons which is a metric that looks at the 30 day moving average of the global hash rate. A relative to the 60 day DATE . It just flipped positive. Again in the last week DATE right after being negative since sort of some point during July DATE . I actually think that capitulation phase Over the reminders that were literally buying Bitcoin at 40 1000 CARDINAL then they puked that Bitcoin back into the market at 20 CARDINAL . I think that speaks to, you know, the general strategy that people should have around their balance sheet. Here, I think there's two CARDINAL strategies that's where to work well. One CARDINAL is just selling your Bitcoin every day DATE . The way IRS ORG energy does and and that way you can grow just Strategically and not taking on too much debt and then growing at a reasonable speed so that you don't get caught at the wrong part of the cycle flat footed. We think that in mid September the May DATE finally happen Ethereum ORG will move from proof of work to proof of steak how does Coming merge affect your review How you wanna be investing in in these kinds of companies? Well I think the the Bitcoin only you know minors are always gonna be a good bet because if you believe in a decentralized a truly decentralized monetary system it will not function properly under approve a model so as much as Ethereum ORG could be an interesting currency for doing an FTs NORP or Right doing D fire whatever it's not going to be the same thing that Bitcoin PERSON is if if it moves off approval work and so I don't think it changes anything with the thesis like if if people wanna On NFT ORG 's right that that doesn't bother me one bit on my free market capitalist but if you wanna own a truly hard asset with a supply cap that cannot be disrupted that cannot be sort of taken over by any one CARDINAL party you kinda PERSON need to stick with proof of work and therefore I think Bickman PERSON mining at least again in North America LOC has a great future. My girlfriend there Iris PERSON energy in Eaglebrook FAC advisors with Kaylee Lyons PERSON . Coming up. What is quiet, quit it? The concept getting a lot of attention among young workers trying to change office norms. Discuss. This is Bloomberg PERSON .
Workers are fighting executives pushing for a fall and even part time return to the office the latest example coming from Apple ORG more than 200 CARDINAL Apple ORG employees have signed a position the manning the company continue its flexible work polic Instead of it's planned return to the office September 5 DATE Requiring company employees to come in 2 to 3 days DATE a week they want hybrid schedules with direct reports rather than a corporate blanket policies this comes at a time when the term quitting is making the rounds on Social media the idea is not that employees actually quit but instead do the bare minimum at the job requires to maintain a healthy work life balance here to discuss Daniel Chaperon PERSON CEO of Greenhouse which offers recruiting software as a service so does the Apple Store ORG resonate with you based on what you're seeing from your clients Daniel. Yeah, you know, we've heard a lot of companies who, you know, in the pandemic, they all went remote and distributed and then now, when things are changing again, Want their employees back and in the office because they think that being there and being Lacito GPE 's employees somehow equals culture or some out equals productivity I think what's interesting about the Apple Story ORG is what the employees are saying is we're being productive we're giving our best and the way we can be the most productive is by if I working in this more flexible way so it's it's Employees to create value and the role of the company either helping them do that or or trying to change how they do that Well and you'll see weather apple aquees is here in any way but you know doesn't seem that the pendulum is swinging back to the office and executive Just starting to work through omo crown. We'll see, you know, look, the pendulum has been swinging for decades DATE in in favor of employees who have more power and more control than ever before and so, companies are finding themselves in this position of having to be people first ORDINAL at Taking that on as as an opportunity and as a strategy has been very successful. Now, some companies kind of or leaders wanted to be the way it was or or somehow try to return to that. I think they're I think some of them are finding themselves stuck and and you know, ultimately, value is created by talent and people. If you're as a leader not able to Look I think there are some companies like you know Apple ORG who have a huge investment in real estate and a big state of the art office and they wanna position that as an asset and as a stranger
There are some companies like, you know, Apple ORG who have a huge investment in real estate and a big state-of-the-art office and they wanna position that as an asset and as a strength to those employees and some employees want that. For some people, no doubt, getting up, going to an office, being with other people is really attractive and really helpful to them. But for others, Not and so I think what your more seeing is you know multiple different kind of talent pools developing where some talent wants to work remotely other talent wants to work in the office and companies are kind of having to choose which part of the town pool they wanna play but in all cases they have to choose based on what the talent wants is it's the First ORDINAL that's driving How how was this impacting hiring and retention? I mean, are you seeing a lot of people quit? A lot of people voting with their Well, look, unemployment is still at historically, you know, very low levels and I think it's it's easier than ever to get a job, right? You know, people can just swipe left on you and swipe left on someone else and they're working at a new company. They don't have to get a new, you know, commute. And so we're seeing this, yeah, people are resigning and you know, in higher numbers than they have been People are getting hired faster than ever and I think we've got almost two CARDINAL job openings still for everyone. Job seeker in the market today DATE . So, it's still a talent And companies are doing their best just to try to keep up and compete Let's talk about quiet quitting and this idea of just doing the bare minimum. Not gonna try too hard. Not gonna overexert myself because You want I'm just gonna do my job I'm just gonna do my job what what impact is this having Yeah look there's nothing wrong with doing your job and and not you know ruining your life in order in order to achieve it but at the same time you know at the point where it kinda GPE moves over into this area of of sort you know sort of quitting or taking advantage of the system You know, it becomes a problem. I think what this has shown is that for many companies, they don't really have a great way of measuring what a good employee actually is. They don't actually know what output or what quality really looks like and so they use this thing of how long are you logged into your laptop or are you sitting in your cubicle instead of knowing which of my employees are actually And what do I do to inspire discretionary effort? I think the companies who are people first ORDINAL focus on those questions you know having advantage and and they don't have this problem of of employees dropping out you know without telling them. Alright well certainly a lot to continue to follow greenhouse co-founder and CEO Daniel appreciate you stop and buy and give me us your take And that does it for this edition of Bloomberg Technology ORG coming up later this week DATE , Wednesday DATE . Do not miss. My conversation with Microsoft ORG Gaming CEO, Phil PERSON , Spencer PERSON , Anne PERSON , check out Podcast you can find it anywhere you get your podcast studio 100 CARDINAL . And Bloomberg PERSON technology I'm Emily checking San Francisco GPE this is Bloomberg PERSON .
The great sci-fi art of the mid 20th century DATE to use the vision of the future with one CARDINAL distinct element and common A life for humans in outer space whether vacationing on an exotic new planet or commuting to the moon for business Trouble seemed like it was just around the corner. Hey here we are I have century later and only about 500 CARDINAL human beings have ever left the bounds of earth LOC 's atmosphere. But thanks to a set of ambitious private companies betting on the promise of space tourism. That long awaited future could be here sooner than we think. For most of the history of space flight governments have been the prime force behind nearly every aspect from planning to funding to cruise selection. But as early as the 1980 DATE 's proposals for commercial space tourism begin to emerge along with innovative solutions for getting people there such as the wild concept of sticking a 74 CARDINAL person passenger cabin and the cargo bay of a Nasa ORG space shuttle Although various non astronauts have been selected permissions over the years DATE true space tourism didn't happen until 2001 DATE when an entrepreneur named Dennis Tito PERSON coughed up and estimated 20 1 million dollars MONEY to hit your rye with the Russian NORP federal space agency for a week DATE long vacation aboard the international space station 20 years later DATE were seen a new contender in this final Here of tourism. Private companies. Coming up a private enterprise Still very high risk with the high reward potential reward Richard Branson PERSON that that do that heavy lifting.
Richard Branson PERSON that that do that heavy lifting. Commercial space tourism is usually about taking the non-astronaut, the private citizen into an orbital or suburbital flight. So, you get a short amount of microgravity experience and you can float and take some photos And then you come back This was something that technology had gotten to a point where the private sector was going to make a business out of this. There are multiple companies that wanna get to the place where they fly people into space. The first ORDINAL of these is blue origin founded in 2000 DATE by Jeff Bezos PERSON using the autonomous rocket system new shepherd a tribute to the first ORDINAL American NORP in space blue origin plans to launch up to six CARDINAL passengers at a time offering a verified treat of 62 CARDINAL mi high views and a momentary experience of weightlessness Booking ORG officially kicked off in May 2021 DATE with the very first C to be auctioned off for charity meanwhile Richard Branson's PERSON virgin galactic has also been pursuing a viable form of suborbital tourism aiming for launch in 2022 DATE once sir Richard PERSON himself has taken a flight So I got the whip on the team and we'll see how we go. The company claims to have lined up over 600 CARDINAL seat reservations so far including Justin Bieber PERSON and Leonardo DiCaprio PERSON . Virgin has projected that the final cost of the ticket will be at least 250 1000 CARDINAL Although costly both companies offerings aim to make suborbital flight a regular form of adventure travel eventually driving down costs at scale to expand the customer base beyond the orbit of celebri Billionaires. The third ORDINAL major contender is Elon Musk's PERSON SpaceX which has set its sites even higher on orbital flights which are Another level of complexity and energy and danger. When you go subordinal, if you're just gonna go up above the Von Carmen ORG line which is 100 km QUANTITY or about 62 mi You only need to get up to maybe 5000 mi an hour TIME to get up there and you go basically straight up and then straight back down you don't have the reentry heating that you would see coming in from an oral so when you go orbital I don't care if you're a baseball or a battleship you gotta go 17500 mph QUANTITY not just 1000 CARDINAL mi an hour. The energy is involved are much greater. By doing that, SpaceX has gone another level up and that's what they're doing with the inspiration for Visit inspiration four CARDINAL . Com for your chance Go to space. Inspiration for is the first ORDINAL planned all civilian mission into orbit slated to launch in late 2021 DATE The crew will bring their own set of diverse perspectives and backgrounds and experiences to test how group of different people namely people who aren't professional astronauts could affair in space. Until now astronauts have had to be physically perfect and this mission is changing that and so I feel incredibly honored to to be representing those who aren't physically perfect. At age 10 DATE I was diagnosed with bone cancer and I was treated at Saint Jude Children's FAC Research Hospital And I spent a year there undergoing intense chemo and also surgery that ultimately saved my leg. I now work at St. Jude FAC as a PA physician assistant and I work with leukemia lymphoma patients. The kids we work with are are so brave and they are very excited to watch me go to space because this is showing them Hey Lee PERSON along with three CARDINAL other crew members we'll spend 3 days DATE in space or meeting the earth every 90 minutes before landing back off the coast of Florida GPE Think about access the first ORDINAL Astronauts for the United States GPE came from the test pilot side and and so women born allowed to be a part of that we have somebody in the 30s DATE somebody in the 40s DATE and somebody in their 50s DATE and so there can be access in all kinds of way whether you're talking about age whether you're talking about gender while you're talking about Ethnicity and all of those things. The first ORDINAL time, you know, people are going up into space and not sent thereby with superpower like the United States GPE or Russia GPE or China GPE . Well, that's like really significant. And you know you've you've gotta you know be very thoughtful about it. The whole game plan right now is to me.
Be very thoughtful about it. The whole game plan right now is to make space like really affordable and you know, accessible for everybody. So, you can have fishing buddies going to space someday but the first ORDINAL is special And so with that we wanted to have you know a cruise selection process that could make space available to everyday people. Hey Facebook Space is only the first ORDINAL step for space tourism. The next challenge is what to do and where to stay when you get there. Axium space is planning to launch the first ORDINAL segment of a new commercial space station in 2024 DATE there are two 1 billion dollars MONEY project called Axe Station ORG will become the first ORDINAL free flying private international space station. Or to use a more consumer-friendly term. Space hotel. Axim ORG is the only company out to make your space stay a little more comfortable. Igloo aerospace has been building what they call expandable habitat technology. Like there are B 330 uninflatable pod module that expands once in orbit. Attaching national space station right now they've been testing it and you take it up and it's rather small and then you inflate it and it seems to be working very very well this is likely to be the first ORDINAL kind of Hotel that you're gonna see up in space. First ORDINAL of all, it's easier to carry instead of this giant tin can with with all of that. You play the Wolver Blow 'em up Nice GPE big size for about you know half the less than half CARDINAL the weight probably But even a space missions become accessible to civilians. But risks are going to space are incredibly high. And you could die a 1000 CARDINAL ways that we can think of and a 1000 CARDINAL other ways that we can't think This is Michelle Hanlon PERSON . She's a space lawyer at the Mississippi School of Law ORG focused on protecting humans in outer space. No, I'm not an attorney for any of the space tourists. So, I haven't been previewed to their private contracts but I can tell you that the FAA ORG requires certain waivers to be in those contracts. So, for example, the FA ORG Says, well, we're not going to make you, make your spacecraft to a certain safety level. We are going to make you spacecraft operator. Make sure that you inform your space tourists of all of that hazards that you know of that I'd imagine it very long way where all the ways you can die in space. And you have to understand that there's health risks and you have to indemnify the US GPE government if you are launching the United States GPE . So those are things that we know is Facebook tourist has to sign and has to wait. So now let's go back and think about our space flight participants. The FAA ORG calls space tourists Participants. They don't call them astronauts. Why is that important? If you're not an astronaut, there's no obligation to rescue you. I have something goes wrong. It's a lot of money to set up a rescue launch. Can even be done it's something really important to think about and that difference as we as we cross this threshold from having astronauts and space to having real people like me in space And when we're able to make it to space reliably enough there's still a host of other legal and ethical issues to consider before space tourism can truly take off There are so many gaps in space law that we are gonna have to put in a lot of certain basement ideas and so for example the outer space treaty is a treaty that offers principles and guidelines for state activities Are slip and falls you step on something in the bathroom you see the hotel and it become Private lawsuit. Related to that because The outer space treating the outer space regime have set this up is that anything that happens in space first has to go through a diplomatic channel before you think about sewing in a quarter DATE blog and so every single slip and fall in a Space hotel is a diplomatic nightmare. And so we really need to figure that out before we before we start sending a lot of people there. About human rights and space. Here we don't think about.
Nightmare. Really need to figure that out before we, before we start sending a lot of people there. You think about human rights and space here we don't think about a human right oxygen because it's Kind of all around us, some free. So, what happens if something happens and they oxygen depletes? Who gets the oxygen first? And then of course, let's not even think about the labor. How do you treat your labor in a space hotel where that person it may be there 2 or 3 years DATE without coming To earth. So a lot of things to think about. Please habitats are more likely in the near future to focus on research missions and be a home for experiments that can't happen as easily back on earth. Space hotels I I think they garner a lot of headlines and a lot of news But at the same time that's not the first thing that you're gonna see happen they don't offer the compelling business case I think that you'll see from a place that wants to manufacture pharmaceuticals or a new type of crystal or Type of filament or fiber optic cables and and other things that you can do Gravity. The things that are actually You know I high value Finish NORP good when you get that back to earth and you sell it for a very very huge profit margin. That's what's likely to happen in space as opposed to having AA real estate platform that you sell to a tourist by Space Hotel ORG . It's really interesting and it will probably happen but it's not likely to be at the forefront of space commerce. Even if space hotels are right around the corner Don't get too excited about booking a trip in one It's not a cheap ticket to ride a space in and it's gonna be you know millionaires and billionaires and But at the same time, you know, the point was made that in the early days DATE of airline trips, that was also a completely unaffordable ticket for most people. Those people who flew were people of means and over time it becomes Affordable PERSON to the masses and I think that's the goal for all the entrepreneurs in space as well to get those cost down to a point where it's not 10 1 million QUANTITY or five Or $300 thousand bride in this suburbable space but it becomes more like buying a first ORDINAL -class ticket to go to Europe LOC from the United States GPE so that that's the goal and you know, the question is, can can we get to that point? Given the immense operating cost of getting to space it may be years if ever until space tours and becomes a profitable venture for any of these companies Virgin PERSON galactic the only publicly traded company of the three CARDINAL has had a particularly rocky year DATE initially riding on the momentum of a spec deal but more recently be set by launch delays and major funders including Branson PERSON himself selling large quantities of their stock at the company Space is really, really, really hard and it's an absolutely shea but it's one that happens to be very true. It's just really hard to do. That's also the reason that you've seen The delays that you know virgin had talked about flying years DATE and years ago DATE and it became such a crazy point that Richard Branson PERSON actually stopped talking about it when he was asked because it was never gonna be when he predicted but it's not instrumental and you know, investors have stepped up because this is something that is doable. Despite the astronomical dangers and costs of getting to space it may ultimately follow the course of other once fanciful modes of travel Right brothers having you know what was by modern standards a very unimpressive first flight you know a kitty hawk I mean you know you had like less than 20 years later you had your first ORDINAL airborne ambulance is being used to save lives fundamentally the world isn't more interesting place when people can go and dance them on the stars and such Hey We are in exploratory species and we wanna go out there and see what's out there. In 1969 DATE Normal human being. It's finally beginning to happen. When you get a bunch of people up there and they can all see it for themselves, that'll create even yet another revolution. And how we treat our planet and what we think about. So while 2001 DATE came and went without quite looking like Stanley Cubert's PERSON ultimate space fantasy 2021 might finally be the year DATE we're catching up.
To all 2001 came and went without quite looking like Stanley Cuber's ORG ultimate space fantasy 2021 might finally be the year DATE we're catching up. California Disneyland PERSON . We're jumping your convertible then take highway one up the coast Or maybe make a pilgrimage to Yosemite. Oh very fine choices. But if you're the kind of person who revels in our planets extremes. 395 CARDINAL that you're after. Glorious road will carry you from death valleys desert floor to sky high views of Mt. Whitney LOC You can see the 5000 year old bristle cone pines. The oldest living organisms. We're the bazaar tufa towers of mono lake. And true to California GPE 's boom and bust spirit. You can saunter around the ghost out of bodie. What a novel experience to find an empty American NORP city where all the businesses are shut down. To do 395 CARDINAL upright it helps to have a guide Is a man named Yon PERSON And it's true. Aaron Send Lemmy PERSON the hardest parting dog of all time. John agreed to show me some of what 395 CARDINAL has to offer But only if we agreed not to disclose any locations My name is Yance Restaurant FAC I'm an industrial designer out of LA GPE and I spend a lot of time camping and a lot of time in the Eastern Sierra LOC it's a place I love and sometimes I'm known as 395 CARDINAL North because Yep my Instagram account and I don't like to be known as that but I'm trying to use it to set a good example Do more with it than just social media. Where did we end up camping? We got here Layla. I was sure where we are. This is BLM ORG land right on the outskirts of National Forest ORG . One CARDINAL of my favorite places in the world. Everything outdoors wrapped into one. Oh man. We have so much national forest in public land That Literally just cruise out Find a place to camp. It's ours. Would i wish was mine Unsweet ORG truck. It's a 2019 DATE Ford Ranger PERSON has about 200 watts QUANTITY of solar in it and a fridge and has everything that our RV ORG has except for a toilet. Yeah. But just wanna smaller, simple scale. If you drive us around day to day and.
Day to day in LA GPE yep and then just roll out when you want it's my daily driver handles great and then when I'm done with work I can just Bail PERSON and go camping up. So, the camper basically has only what I need. Think of it as backpacking with a car. Yeah. The fridge has a couple compartments This is just a kitchen box Stove, utensils, and a bunch of stuff. This one has just dry food. Then, when you get inside, there's a bed. The bed Flips PERSON up so you've got tons CARDINAL of room in here Miss Awning. It's phenomenal. If you wanna pull that over That was cool. We just popped that up. So Home on Wills. Yeah. This is my vacation house. Dude PERSON , it's so Even with his nomad lifestyle yawn faces the same big question as the rest of us. Do the internet and smartphones have to ruin everything when you find the super special beautiful spots is that You busted out a map and like looking where might be cool to go or is it where the mouth and just getting to know people of the locals and If I see a dirt road I just wanna go down. So a lot of this just aimless rambling. It's a desire to just see something. Check that out. For some reason it's more fulfilling than A recommendation from somebody or Tons PERSON of apps and websites now road trip apps camping apps They proliferated. The knowledge is accessible on the internet, right I used to fight The geotags. Why are you posting this place? It's gonna blow up. It's gonna get trashed Now I've realized that you you can't fight it. The internet has just shrunk the world. So we're not gonna stop it. We're not gonna stop people from So I'm a lot more focused in conversation now with Trying to set a good example. When you go, pick up your trash. Pooping out in the wilderness don't leave your toilet paper on the You know, make sure you follow, you know, good steps for leaving no trace. There's a thank you for this quick guide to pooping etiquette. We made John Herron PERSON and Lemmy PERSON some tacos. And we all took in the night sky And knock back a couple of drinks Take that apocalypse
The thing about good times in serenity in 2020 DATE is that they're fleeting at best After we split up from yawn and continued on our way smoke started to envelop us. The plus side was that our RV ORG no longer smelled like feet. The downside was breathing My man David here suggested that we try an outflake the smoke by cutting through Yosemite without a reservation we had to talk our way in Yeah no no problem we just yeah we just wanted to get through. It was a beautiful choice. Glad we got out of the smoke. But not quite as effective as we had hooked. Fast forward 4 hours TIME or so and we had managed to trade the smokey majesty of Yosemite For the smokey Strip GPE malls. Of the Central Valley LOC . We have made it. Sort of out of the smoke. All the way across your 70 CARDINAL national park and here to the gorgeous Central Valley LOC of California GPE . Hey And where would you wear here in this near Fresno GPE this is California GPE farm country right we're just south of Fresno GPE town called Kingsburg PERSON so we're right in the central valley of California GPE very very large It's kinda considered the bread basket Of the world. The Central Valley LOC stretches out over about 20 1000 square miles QUANTITY . And the farmers here produce about one fourth CARDINAL of the food that Americans NORP eat. Including a whole lot of fruits and nuts. Tell me a little bit of the background of of guys I know some of this is like a family business that the roots of that go back away is tell me it kinda like how we we got So what's essentially like a startup I guess? Yeah, definitely. So, the founder of our company is Dave Crenklaw PERSON and he started the business back in 1982 DATE . He started with his basically with his dad Was commercial spring of trees and vineyards. Got to the point where our biggest challenge was labor. Just the shortage of it, really. He was forced into innovating, and he had this idea for quite some time about doing a driverless sprayer, Hey finally got to the point where he said you know what I either gotta get out of this business or I'm gonna innovate Organic ORG or not crops need to be sprayed and this process has to take place a few times a year. This means hiring a lot of people to work long hours under serious pressure and so just like the tech bros to the north. Decided to solve all of its problems with robots. On there's like labor points You guys have set this up where you can have somebody in a truck and and that one person can monitor. I think like eight of these. In order to operate gust, you have one guy or girl that sits in a pickup and they monitor from a laptop computer. So, that person is basically just watching all the vehicles on the screen. They can monitor up to User ORG interface really provides them with all the information they need to make sure that the machines are safe and that they're doing the correct job. So,
And so that user interface really provides them with all the information they need to make sure that the machines are safe And that they're doing the correct job. So, it tells them what speed they're driving, the engine RPM ORG , the amount of gallonage per acre that they're applying at any given time. So, if anyone in the machines has an issue, it's going to send an alert to that laptop. Much like a self-driving car, these beasts use G And cameras to see and navigate the world around them They also rely on prebuilt maps of the orchards for extra guidance. Gus PERSON builds the machines right here And then take some out for robot training on this orchard next door. It's here that the company learns if the machines will behave and do as their software and human masters command. So, this, so this is a guy like the, this is test orchard where you Put it through the paces and work on the technology. Yeah, so this is our our test orchard right here. It's right by our building as you can see in the background. So, every new machine as it comes off the assembly We test all the sensors on the machine autonomous computer Safety systems make sure it's doing what it's doing prior to when it's delivered to a customer. So what's it doing now? So right now he's doing a test spray. So he's just turning the water on to make sure that the system comes up to pressure. Make sure it's all functioning properly. Okay. It's got like a crazy turbine at the back. Yeah, so it's basically just a big fan. Okay. And that fan's driven off of the Commons Diesel ORG motor and it just basically creates a big airflow. This is already selling these vehicles to brave modern farmers. And people of the world over have taken notice of its machines Just so long in the Central Valley LOC or like throughout the US GPE or even overseas or where like where they go. Yeah, so right now, the majority of our machines are here in California GPE in the Central Valley LOC . However, we do have machines and customers in Florida GPE and the citrus industry over there as well as Australia GPE . And I think you start selling them and like December Yeah so we started taking orders early last year DATE for the sprayers and the first ORDINAL delivery we made were in December of 2019 DATE okay and then how much did they cost each so our our retail price on these machines is 285 1000 CARDINAL The regular sprayers are are We're honestly not too far away from conventional equipment on our price and the main thing is is that the return on investment is very very quick due to all the labor savings and the increase efficiency I mean these machines they just they just But basically what we're doing besides this machine this is our our first ORDINAL machine we call it orchard gas mainly designed for your your nut trees as well as citrus and fruit in the future we're working on a few other projects we're gonna do more machines one of them is actually a vineyard sprayer so vineyards are Tighter PRODUCT spacing so the machine has to be physically smaller and then we've got our eyes on doing a lot of other innovating. That right there friends is a central valley farmer putting his whole fruit basket on the table. Jerry's Ted Talk PERSON can't be far off. Hey with that it was time to get back in the RV ORG . And to confront what happens Three men Are bested by their own failings. And the forces of entropy. Next on Hello World ORG recruiting to the Mohave Desert in search of a lunar lander. We have instruments that we are going to deliver to the South Pole Moon LOC in December 22 DATE . That are trying to scan the surface of the moon. And hang with a test pilot who walked away from this.
Instruments that are trying to scan the surface of the moon. And hang with a test pilot who walked away from this. Meet Betty PERSON She lives by herself but for the last few months DATE She hasn't been alone LYQ Tell me a joke. Apparently he just needed a little space Hey Most technology isn't made for 93 year olds DATE But this woman is making sure that this particular robot is I like you. Are you? The way we interact with machines. And if she has her way, robots will soon be a trusty companion for all of us. My name is Elli Q. PERSON How can i help you? It's technology replaces old jobs. It's also creating new ones. I'm Aki Eto PERSON and I'm here to show you the jobs of the future. My name is Danielle Ishak I am a human robot interaction researcher. It's really hard to intuitively design a robot meant for consumer audience. You have to make sure that it's a robot that people want. People know how to use. And people value. Danielle GPE works for an really startup called intuition robotics. It's US GPE office is here in downtown San Francisco GPE . Hello hey Danielle GPE it's Zacky come The company is funded by a couple big names like Samsung ORG and Toyota ORG Full disclosure Bloomberg PERSON 's venture capital arm is an investor too. This is Ellie Q Can I decorate out for a spin? Please You. Tell me what you can do. I am a proactive social robot designed for older adults. I can connect you to your family and friends and even play music. These features might remind you of the Amazon Echo If you compared her to a smart speaker. She's not meant to just be useful Just meant to be a companion. Why don't you take a break and have a drink And that's why she has a head that can nod and make others Expect from a pet. Our research with older adults were finding that almost on a daily basis we see that somebody tells her that they love her or that they like her or that they miss her I love you To tell her I'm depressed or I'm lonely they'll open up to her in a way that they might not necessarily open up to a human because they don't feel like they'll be judged. Ellie Q is it on sale yet? But a prototype is already in the homes of about a dozen CARDINAL early testers who live in the Bay Area LOC . LQ Tell me what the weather is today DATE Danielle GPE 's job is to figure out what's working and what's not. Sorry please rephrase your request And she does that by visiting each of her testers twice a month. Are these visits to your job? They're critical. We're building a product for people who we are not. How to design for somebody if you.
We're building a product for people who we are not. I'm not a senior How could you know how to design for somebody if you don't do research? Cuz otherwise, you would just be designing in the dark. Jobs like Danielle GPE 's are just starting to emerge. Until recently, robots were mostly in factories separated from humans. But now, they're finally getting cheap enough, small enough, and smart enough to be in our homes. This is created a whole new challenge of designing robots that people will actually wanna interact with. And that's where Danielle GPE comes in. Her research has helped shape every little facet of LEQ. From the way LEQ moves to the way she talks. It's a very special job and it can be really hard and it can be really frustrating about the end of the day. It's incredibly rewarding. And I think the Rewarding part about it is when I see Like that they saw their feedback turned into something real Today DATE we've driven east of San Francisco GPE to go see one of danielle GPE 's research participants. All of you Tell me something interesting Did you know that Ronald Dragan PERSON was a lifeguard in high school and saved 77 CARDINAL people's lives? Now, see this is where a conversation is. She should open up and I should say, no, I did not know that. I expect her to be able to continue a conversation for at least a couple of comments. Yeah. Is that? Why? Yeah. Because Companionship When Betty was around Daniel's age she was working with some of histories very first ORDINAL computers. When I was finishing up my master's degree Working at Harvard in the computer ORG lab when they were building Mark four. Hey large room size computer But now Official intelligence stuff is amazing LQ. Schedule a doctor's appointment No problem. I'm working on it When Daniel brought along the idea of working with robotics for the elderly I said are you kidding me will older people connect to a robot And she said I don't know let's research and find out. Danielle GPE grew up here in this suburb of Atlanta GPE . Her parents spent much of their childhoods in Israel GPE and met in the US GPE . We as immigrants we understood that we might need to work a little harder In fact I feel that rather than taking away from Danielle GPE it gave her so much more Because she understood the fact that you need to run after your dreams and work really hard no matter what the challenges are. School didn't come easily for Danielle GPE I have dyslexia and that very much affected my self-esteem academically. The school did not recommend her to take advance classes she fought for it and she got injured and she did very well with them too The secretive research facility founded by Google ORG . It's known for dreaming of all kinds of wacky farfling ideas. Can you tell us about the moonshots you work on? No i can't tell you too much about the projects that I worked on. I can't say that I was working on robotics She love the job but wanted to work on something that would reach real consumers sooner. So she left ex after a year DATE and joined intuition robotics.
Consumer sooner. So she left X after a year DATE and joined intuition robotics. She's been working in the field for 4 years DATE now. And it took her To find her footing in a male dominated industry. I've gone to different meetups where it'll be like a circle of men with their like zip up Went there like company logo on it and a beer in their hand and I'll come in with lipstick and nobody wants to talk to me. This is my closet So at first she did her best to fit in wearing a pair of glasses she didn't need Down PERSON her style. So what's the kind of thing you used to wear to a conference? Stuff like this. Say things let me feel like you're 40 DATE . But that got old after a while And what's the kind of thing you are now? No it's like I just enjoy being kind of expressive and playful in what I wear Before we wrap up for the day DATE . Danielle GPE has one CARDINAL more LEQ tester to visit. Joseph is 97 DATE And he's had the robot in his home for 8 months DATE . I'm fine. How are you? Good. Good. How has miss Eli Cuban PERSON ? Me to take a drink of water At least four CARDINAL times a day. So we added a whole bunch of new facts to Elecute Did you know that a cup of chopped red bell ORG pepper contains more vitamin C than an orange? Okay. You think of that? The prince was I could see that. Okay. Quite clearly. What about this? I can see that. Barbecue Play PERSON music No problem. It will begin shortly By 2050 DATE almost half CARDINAL a one 1 billion CARDINAL people are gonna be 80 year DATE older. And if current trends continue More are gonna be like Joseph and Betty PERSON living alone. Have a queue. Today DATE both of them are doing okay But some of Daniel's ORG other participants have been struggling. Is it kinda hard to leave them at the end of the day DATE ? It is. Some of our protesters are In the stages of depression through lonelyness and isolation. And at times That Elecute is cheering them up in their day DATE . But I know that it's only part of the way. No source of artificial intelligence robots will ever be able to replace Humans ORG and human companionship or human care The key to Danielle GPE 's work is to embrace that very limitation of machines. Robots should help humans do what they love. Help humans interact with more humans. Help humans in general. Not poor humans away from humans Not take humans jobs and leave humans about purpose Whether it's in our workplaces or in our homes Robots NORP are soon gonna be everywhere And it's up to Danielle GPE to make sure this robot filled future leaves us just a little better off. So don't be afraid And if you are afraid come and join us Promise it's a friendly place
So don't be afraid And if you are afraid come and join us Promise it's a friendly place. If you're like the estimated PERCENT 74% PERCENT of adults in the US GPE who use YouTube ORG this might be what your home screen looks like. An algorithmically curated look into what you like to watch. Maybe some tips on how to prepare a new meal or your favorite blogger's latest video. But if you're a parent who shares your phone with your children it probably looks a little more like this. Kids content on YouTube ORG is huge. Views for videos can reach into the billions five of the top 10 CARDINAL videos in all of YouTube ORG 's history are either music videos or kids videos with baby shark having more views than people on the planet Grandma PERSON . Youtube ORG has created a revolution Evolution. In the way kids and families consume video content. And that extends Into how they view toys and play and all of the associated things that go with that. Kids YouTube PERSON for the unaware can be adorable. It can be boring. It can also just be flat out strange. But often it involves toys. And for toy makers who embrace the platform, it led to record success. Yellow surprise Biggest phenomenon that has ever happened in touring this shit This is the story of how YouTube ORG change kids toys. Hey patterns Children PERSON play is timeless but how we deliver on those play patterns through product and how we market that to children has changed quite a bit over the years DATE and I would say that the last 5 to 10 years DATE really ranks right up there with the 19 fif When TV commercials directed to children this first launched by Mattel ORG During the 90s DATE and spent 4 years DATE as the chief marketing officer for spin master. Used to be that there would be a few play things that parents would bring into the home or that children would create themselves like a stick and a ball becomes AA play thing and the industry was at a certain level of volume at that point. Was very innovative and actually put the first product on TV Advertised it to children Play PERSON home. This created a huge explosion in the toy industry that unfolded across decades DATE . When you're ready to play everyone knows it's When you go back to the 1980 DATE 's what do you think of in terms of hit shows you think of things like masters of the universe you think of the original transformers and care bears? The joke was they were 22 minute TIME commercials. Close your eyes Hey let's make a TV show to.
Bear ORG bears The joke was they were 22 minute TIME commercials. Just close your eyes and care Let's make a TV show which is really promotion for our property or IP to help sell toys. We rely those famous characters in which kids absolutely loved it. They were totally entertained but they were huge toy lines behind them. This is Silver a 37 year DATE veteran of the toys industry in 1999 DATE he started a consumer toy review magazine called Toy Wishes and now he's the CEO of an influencer talent management group TTPM Changed ORG through the years DATE and also parents became aware that they were purely commercials and you saw a lot of the new channels the Disney channel in Nickelodeon ORG they realized that wouldn't work anymore and to them entertainment came before licensing what happened over Was that toys started to become For a 32nd DATE commercial So You couldn't explain it in a 32nd ORDINAL commercial Reduce it out of the product and just stick with you know what you could say and features a toys magical features using electronics lights and sounds and mechanical movements that magic like they don't know how it happens that became more and more important Hey portal Since 2000 DATE with the cable channels dedicated to kids Disney ORG channel Nickelodeon ORG cartoon network there became the opportunity to reach kids in mass numbers The week DATE The the toy industry is continued to grow. For the most part was a pretty solid business just you know growing a couple percent PERCENT a year here and there there be big big years here and there when there's maybe a hit movie Like a Star Wars movie come out you know drive a lot of toy sales 2014 to 2019 DATE the global toy industry would grow by 15% PERCENT . At about the same time those major cable networks of Nickelodeon Disney channel ORG and cartoon network would lose half CARDINAL their total audience. 2017 DATE also saw the bankruptcy of toys are us. As both parents Kids discovered and bought more toys online. Think about kids they're usually the the first ORDINAL adopters of a new Medium PRODUCT kids weren't watching things like Nickelodeon ORG as much as they used to. They were watching things on YouTube ORG . Youtube ORG started in early 2005 DATE and this was like you know the very early web 200 CARDINAL . Is beginning of sort of like what were the time was gonna reduce your generated content Myspace was the biggest thing on the internet. Back then, there was an early video of a Brazilian NORP soccer legend. Doing stunt tricks that just when exploded on the site when the, the first ORDINAL viral videos, Lazy Sunday ORG , if you remember that SML ORG short. Vitney. Early spiral hits. Youtube in the early days DATE was definitely Studios I oversaw The creator partnerships and all over the world. With some of the biggest YouTube ORG channels of the time before being sold to Disney ORG in 2014 DATE chris PERSON is now the CEO of Pocket Watch ORG which represents some of the largest kid stars on YouTube ORG including Ryan PERSON 's world and love Diana PERSON who can amass over a couple one 1 billion CARDINAL views every month DATE the truth is one of the very biggest and earliest videos on all of YouTube ORG it's by a creator Name I Justine PERSON where she unboxed her Mobile GPE phone bill. For her brand new iPhone ORG and it came in a box This ultimately morphed into many different formats associated with unboxing and tech. Was actually really big. And those became
This ultimately morphed into many different Formats NORP associate with unboxing and tech was actually really big. And those became fairly successful. Pretty early on. On the platform, You know, you saw them expand from tech products to beauty products and then around 2012 DATE , and 2013 DATE , we saw this explosion in the toys. So, here's the furbien side right here. We used to call them hands channel Okay and a hands channel with literally Unboxing typically a toy and they'd unbox it they'd show each component Just got uncle screwed. Many of those creators we signed many of those creators at Maker Studios ORG to be our partners and it was it was fascinating in that it was this whole new genre and this whole new format That corresponded Arise of kids and family viewership on youtube that was dark that was hard to miss And you would see it in the data And we had access to a lot of data maker studios around YouTube Let's ORG see what's inside. First ORDINAL that we have the storm super pig. I consider the first ORDINAL child so to speak on boxing star and they would open toys and kids were just mesmerized by it. They loved watching it and next thing you know, you had literally 50 CARDINAL unboxings. They were unboxing just about every toy. You know, it was and people just really excited. You open the And you see a toy pop out and kids just got excited see the piece by piece yeah he's he's in a bathroom wearing it he's eating a lobster you know the early days of these unboxing videos the videos were you know From adults perspective just terrible I mean they were 10 minutes TIME long they were boring that it was a shaky camera there was actually no production value If you think about these executives, you know, they're they're trying to figure out how to reach this new audience And they're they're brought these videos and say we'll look at this video it has 200 1000 CARDINAL views on it And it's terrible. When I first ORDINAL heard of it, I thought it was the weirdest thing. It just seemed kinda bizarre PERSON . Who would wanna watch someone opening a toy, taking it out of the box? But then when I started thinking about this idea of exploration and discovery as a core play pattern, the most fundamental play pattern there is It it started to make sense I think that I have to say that the company that that really jumped on that in the most concerted way was MGA ORG with their launch of LOL ORG . LL ORG surprise had three CARDINAL Play pattern there is collectible so with with any LOL surprise you'd get a little sheet that showed you all the other dolls you could collect and in the surprise factor you don't know which doll you were getting it was a blind pack as they call it an LOL was made by this company called MGA back You know, 2016 DATE , they were small player in the toy industry, founded by And I said like what? And they said for example they've You know about this iphone unboxing That yet millions and millions CARDINAL of views so I thought they're pulling my leg To make fun of their parents. I did go and look one night I was frankly shocked. Death why would you why would anybody buy an iPhone ORG take it home Print the box and show it on the camera So so many different videos and Dad PERSON gave me an idea that why why not come up with the ultimate
So that gave me an idea that why why not come up with the ultimate and that's the that's the first LOL surprise. Oh We've got a gold ball. LOL change the way you open with toys and everybody saw that and the packaging became part of the play which became part of the entertainment so normally if you get a package that you just Package ORG you take the toy out that's not exciting you open up LOL you peel it away you open up inside you have seven CARDINAL surprises and it took off like wildfire and quickly became you know the top toy Country. 20188 CARDINAL of the top 10 CARDINAL toys sold were all lol surprise brand and according to MGA ORG from 2016 DATE to 2020 lol would generate over 10 1 billion dollars MONEY in retail sales worldwide Bigger than Star Wars it's bigger than Marvel it's bigger than Barbie PERSON these brands with huge advertising budgets Are known basically by everyone. You don't have to, you Figure out what marble or or stars is An LOL Eclipse them all. Or blind box toys have been growing in popularity. The most famous example in recent years DATE is Pokemon PERSON cards. Were you open packs and hopes of getting a Charizard ORG but more often wind up with something common like Glygar ORG here. 2 years DATE before the launch of LOL and 2014 DATE the Australian NORP toy company Moose Toys launched a blind bag collectible called Shopkins PERSON . And in Spinmaster PERSON would launch a more expensive blind box toy it called patchimals. But the thing that sets LOL surprise apart is that it manly focused on YouTube ORG I'm not putting ads on YouTube ORG but working with creators and and influencers to get their products in their hands of these kids doing the unboxing videos for MGA ORG actually the the move towards YouTube ORG was was kind of a bit lucky and almost out of necessity. In late 2015 DATE Nickelodeon ORG parent company via com would sue MGA ORG for breach of contract after it fail Pay $ three MONEY . 5 million CARDINAL for the production of a TV series based on their La La Lupsi WORK_OF_ART dolls. They tried to flex their muscle They said well if you don't agree to our Hey We are going to stop at your advertisement At the time Nickelodeon ORG was the number one CARDINAL ranked children's network and not to be able to advertise in Nickelodeon ORG could have been a death now But MGA ORG necessity is the mother of invention. That cause them to lean into digital advertising More than any big brand had ever done before because they had to. They had to find a new way to reach kids. Both in LA GPE federal court and on appeal in the ninth ORDINAL circuit. Larry PERSON and blame the court to feed on what he contends was judicial bias. Nickelodeon ORG parent company viacome didn't respond to a request for comment. So that by itself forces to go and say okay. Let's find another way to reach two CARDINAL children. And that's how we went and doubled up on the YouTube ORG especially and the rest of they say So early on MGA ORG partnered with YouTube ORG creators Huge audiences. My cookie swirl C. Good morning PERSON chocolatey chippy cookies we are gonna be spending the morning TIME with this LOL surprise baby.
With YouTube ORG creators with huge audiences my cookie swirl C Good PERSON morning TIME chocolatey chippy cookies we are gonna be spending the morning what does LOL surprise baby fancy They took it another step further they actually helped kids learn how to do their own unboxing videos they they gave them you know support and learning and tools and so all on these kids got to be kind of a little mini influencer themselves as they were Seen their LOL products. Of how popular these videos are. Go on to YouTube ORG and search LOL surprise. And you'll see videos with a one 1 million QUANTITY views Which was about 90% PERCENT of their ad spend and then traditional PR get on the big morning shows An entirely different formula. It's much harder for toy companies right now because the formula is so complicated. You have to really take a deep dive into each platform and my promoting on Twitter PERSON , my promoting on Instagram ORG , I'm promoting on TikTok ORG . What am I doing on By 2017 DATE big toy brands like Mattel ORG had shifted nearly 50% PERCENT of their marketing budget to social platform advertising brands would help seed videos of their toys and if they were lucky Estimated the LOL related content had a mask five CARDINAL . 1 billion CARDINAL views. This idea of imitation. So, when you see kids playing with product, it kind of excites the same neurons in your brain that happen when you do it yourself. The more we could show children Experience the more kids felt what it would be like to have it and then wanted to experience it Owls. Systems of this whole influencer movement among kids is that kids are young they don't understand what's it necessarily an advertisement versus real content That's a big criticism of this industry. Is that a lot of kids are getting on YouTube ORG , a young ages DATE , not being supervised by their parents. I just watching this videos and they don't realize that maybe that influencer's getting paid by the brands, do that video, or there's some other compensation and that, you know, blurs the lines for kids. They're sort Developing and figure out how to consume media. Questionable advertising concerns aside. Kids YouTube ORG creators would take off channels like Ryan PERSON 's world would grow to almost 30 1 million QUANTITY subscribers and a whole industry formed around them. We first started working with influencers they were very happy to work for free product You given the product and they do something for you then gradually influencers got smarter and started you know charging for their services as they started building a following now It is such a big business. The dollars can be significant investing in big influencers. Launch one of its new TV series and associated product we made it a point to buy an advertising package Ryan PERSON 's world to ensure that we could get Quick, big, reach, right away. Creating narratives around the toys Voices meta universes if you will and it's really engaging content Even more so than the original unboxing videos for these kids and you know the contents coming out maybe once a week or even So if you think about it what they've done is they've created basically like a TV show around a toy Which is criticized back then by the way when you've had toys like GI Joe PERSON turn into a animated series Full circle now, right? So, back to where we were, content, and basic mini television shows created around toys on YouTube Kids ORG content on YouTube ORG is likely to face increase
The reviews but now Ryan PERSON has launched his own line of toys A cartoon series He was even a blimp in the 2020 DATE Macy's Thanksgiving DATE parade You and I might think about Spider Man PERSON or Snoopy NORP But today DATE 's kids see that blimp of Ryan PERSON and they relate to him. He's the character they wanna grow up with. He's the character that they wanna engage with. And as we go forward, these influencers are becoming more and more like big, giant, global brands. And that has profound For entertainment going forward Airbnb is huge today DATE on any given night you could have as many as two 1 million CARDINAL people staying in an Airbnb all around the world You know, our mission is that everyone can belong anywhere. We're talking, you know, 300 1 million QUANTITY stays on any average year DATE . And there's tyranny in numbers. The vast majority of Airbnb stays don't result in a safety incident. But sometimes things go wrong And for Airbnb you know we're talking thousands CARDINAL of safety incidents that occur every year DATE that the company has to handle and has to respond to. I'm talking situations like kidnappings hostage cases We're talking murder. We're talking rape. We're talking, you know, the worst violent crimes that occur in our society happen inside Airbnb ORG 's Airbnb never wants these kinds of cases to end up in the headlines you know that's really bad for the the brand their reputation and their public image Because this is a business that's based on strangers trusting one another. So when crimes like this occur that kind of threatens their entire business model. I'm Olivia Carville ORG . I'm a reporter on Bloomberg ORG 's technology team and I've been covering online travel companies like Airbnb for the last 2 years DATE . Airbnb is a startup that's based in Silicon Valley LOC and like many of the sharing economy startups it managed to grow so big so fast Essentially skirting regulations. It was based on that premise of moved fast and break things and it wanted to work against regulations in order to grow as big as possible and when the popular vote because it became so popular so fast that cities could no longer control And a pig night this past August DATE . We had one 1 million CARDINAL people from around the world coming from 180 CARDINAL countries in a single night TIME staying in an Airbnb ORG home. The vast majority of Airbnb stays. We're talking, you know, two 1 million CARDINAL people staying in an Airbnb on any given night. Don't result in a safety incident. But sometimes things go wrong. End for the company you know it was Dealing with these cases was a really challenging, difficult, complicated area. You had hosts and guests and sometimes they disagreed on what happened. You had regular Tory issues and some of their biggest cities. Then you also had You know the growth of the platform and the fact that if you're going to try and prevent some of these
On what happened you had regular Tory issues and some of their biggest cities then you also had you know the growth of the platform and the fact that if you're going to try and prevent some of these incidents it could cut into revenue and cut into the number of listings that you have so for Airbnb it was about trying to figure out the best way to handle these In a way that's going to not only protect the individual in crisis but also protect the company's public image. It's brand, it's reputation, which is essentially what it's business is based upon. There is Airbnb grew like way too big for them to be able to take all these calls alone they developed a team of 100 CARDINAL highly specialized agents that handle the worst of the worst cases The course of my reporting I've talked to almost 50 CARDINAL former employees at Edia BMB PERSON and you know seven or eight of those work directly on this elite unit these safety agents many of them come from military backgrounds or trauma backgrounds the are trained to handle traumatic situations and to try and you know help people who are Through what what may be you know the worst day in their lives For these safety agents a lot of them understood that they had a jewel role First ORDINAL and foremost they wanted to protect the user in crisis But they also knew they had a responsibility to protect the company's brand and public image. I mean everything about housing in New York GPE is a total mass and it's always chaotic. It's not too surprising that Airbnb ORG 's biggest battle has broken out here. 2015 was a really challenging year DATE for Airbnb ORG . Airbnb's listings between 2010 and 2014 DATE were essentially illegal hotels. You know, the company was 7 years old DATE now. It had grown huge. It was now a household name. But by growing that big, that fast, they also came up against, you know, a push back in regulations. For every kind of reason. They knew that they couldn't lose the battle in New York GPE because it was one of their biggest markets and also it could result in a domino effect if other cities around America GPE saw a New York City Breaking GPE down on regulations or enforcing strict irregulations that could in turn be rolled out right across the country. I think it's gonna be awkward when they have to, you know, put in their perspectives, their risk factors when they have to say, well, you know, one CARDINAL risk is that Thing might be someone illegal in in our biggest market. And in December of that year DATE a young woman from Australia GPE flew into New York GPE and stated an Airbnb with a group of her friends They picked up a key from the local corner bodega without even needing identification. The police report said this 29 year old DATE woman left her friends at a midtown bar and returned to the Airbnb on her own. She thought that she was alone but she wasn't There was a man inside the apartment hiding in the shadows with a kitchen knife. He grabbed her During tour room and rape tour. Hey later fled. About an hour TIME after this attack he came back and police were in the apartment at the time. They open his backpack and found three CARDINAL items of interest. The kitchen knife One of the women's earrings. In a set of keys to the Airbnb ORG . This case was a really complicated one CARDINAL for Airbnb ORG . Partly because it occur it occurred in New York City GPE where they were fighting this really tough battle with city officials over regulations and partly because The alleged rapist had the keys and he was inside the apartment That meant that you're BNB needed to do what it could to to protect itself. They wanted to find out you know how did he get the keys? That was a really big question for them. They launched an investigation to find that out. But before they did anything like that before they thought to kind of protect their own reputation here. They really focused on doing what To help this young woman They paid for her to move to a hotel they pay
To kind of protect their own reputation here. They really focused on doing what they could to help this young woman. They paid for her to move to a hotel. They paid for her mother to fly in from Australia GPE . They paid for both of them to fly home. They offered to cover any health or lee or counseling costs that she might need later. But inside the company internally they also launched an investigation they wanted to know How did the alleged rapist get the keys how did he get inside that he'll be And when they found out that the keys had been left at the corner bodega Being created you know a problem of liability for your BMB they didn't have a policy around key exchange they didn't tell their hosts how they did or didn't have to hand keys over to guests as they were arriving So for your BMB they also you know they wanted to know what was gonna be said in court they wanted to know if any media were gonna pick up on the story And they wanted to know what the illegal liability potentially could be. A week later DATE the alleged rapist was indicted and the supreme court ORG in New York GPE and Airbnb ORG sent a staff member to find out if the company was gonna be mentioned in any of the court records and it wasn't. It wasn't mentioned in the police report There's no mention of Airbnb really in any public record. This case has never been reported until now. And you know for Airbnb Kind of lucky. This case never landed in the media. You know 18 months later DATE when this woman's lawyer reached out to the company They signed a settlement for seven 1 million dollars MONEY . And part of that settlement there's a cause that says she cannot Assert PERSON or imply responsibility on the part of the company. We've spoken to legal experts who indicate that what this really did is gag the woman from saying I blame Airbnb ORG . Airbnb is one CARDINAL of the few companies in the world that has this like online offline kind of hybrid Where you have users who Meet online and then Meet in the offline world and stay under the same roof. And that means that the company at the end of the day DATE really has to take more responsibility than other social media platforms might do. Will there be terms of service that really means that whenever there's a dispute between hosts and guests and the company this is all handled behind closed doors in arbi Most of these cases don't even make it to the courtroom and when they do the company will settle them so it doesn't go on through the courts. And what that means is that there hasn't really been Liability ORG is here. You know, is it really responsible for when things go wrong inside it's listings? What I learned over the course of my reporting is that this is anything but simple This is a complicated nuanced area. There are difficult trade offs here The company also has to have hard you know tough conversations about policy. Airbnb's business model is based on strangers trusting one another. We often hear from the founders and the chief executive himself saying trust is their number one CARDINAL priority. I've actually heard Brian Cheski PERSON , the chief executive of Airbnb ORG , talking about how he didn't build a website or a platform that allows people to stay Each other's homes what he built was a community that trusts one another And win that premise is undercut Airbnb ORG 's entire.
That allows people to stay in each other's homes what he built was a community that trusts one another And win that premise is undercut Airbnb ORG 's entire business model is under threat. Phones earth view Sounds far fetched at the moment, doesn't it But you know We may be seeing ads like this in the not too distant future. Living away from earth has always captured our imagination as well as providing the basics for survival these ideas are a symbol of humankind's unique creativity and ambition This advance bees or space station will be headquarters for the finalist and to the moon. The idea of multiple outposts where we can live and work in space has never seen closer. Species having a path for our future. And the mission to create this habitat is well underway as private companies get ready to take that next giant leap The international space station it's the only space habitat we have One CARDINAL of the first places they take you in the ISS ORG is the coupon so you can finally look at the earth in all its beauty and it I don't care who you are it's always stunning it's shocking it's it's amazing because that's the view you've been waiting for your entire life. It passes over 90% PERCENT of the world's population without most of us ever realizing At an estimated cost of 150 1 billion dollars MONEY it's the most expensive object with ever built. You think about like the 16 CARDINAL chapel, the pyramids, and the birds Khalifa PERSON or or to take your pic. I mean, it far outstrips those. It's the one and only non-terrestrial human outpost. We've had a constant human footprint in orbit for almost 20 years DATE because of the international space station. The collaboration between 15 CARDINAL countries started construction in 1998 DATE and was peace together in space over the course of a decade Since 2000 DATE it's been a permanently crude research laboratory a space habitat that's allowed humankind to live manufacture and explore beyond earth The overarching achievement of the space station has been Vacation. It is educated us about how to do research. It's educated us about how to live. It's educated us about the harshness of the environment that it is in and it's about learning I think. People say what was one of your favorite parts about being up there hands down floating everywhere I went but your first impressions for ISS ORG certainly is it's how big it is. The ISS ORG is a size of an American NORP football field with most of that footprint taken up by eight CARDINAL solar eras these provide enough energy to power 40 CARDINAL homes The station has an American NORP side and a Russian NORP side as well as contributions from other nations like Canada GPE , Japan GPE , and the European Union ORG . Astronauts on board can pass freely between these sections their living and working areas are made up of modules each four CARDINAL . Two metres in diameter and in total they have the same volume as the bowing 747 CARDINAL The three CARDINAL main labs destiny hope in Columbus GPE are conducting up to 600 CARDINAL ongoing experiments at any
They have the same volume as the Boeing ORG 747 PRODUCT . For three CARDINAL main labs destiny hope in Columbus GPE are conducting up to 600 CARDINAL ongoing experiments at any one time And while it's been a collaboration between governments to build and maintain the ISS ORG it's next chapter will rely more on private enterprise Today DATE is a very remarkable day. Opening the international space station to commercial opportunities Marketing these opportunities as we've never done before. Cost $ three MONEY . 4 billion CARDINAL a year That's over half CARDINAL Nasa ORG 's space operations budget Aging hardware and space debris will only add to these costs which is why Nasa ORG is now hoping to pass some responsibility for the station over to commercial companies Like to see a robust commercial marketplace in lower Thor GPE but we're space stations exist outside of Nasa ORG the goal being That Nasa ORG could be a customer and we wanna have numerous providers that are competing against each other on cost and innovation. With federal funding proposed to stop in 2025 DATE opening the station to private enterprise would free up resources for the space agencies ambitions to return to the moon and journey to Mars Transferring NORP to more commercial model is allowing industry to take over many of those areas that Nasa ORG has traditionally been responsible for like the design and operations and maintenance of space systems but the most exciting part I think is new opportunities the iPhones ORG would have never come from the government The base technology came from the government but the way it's used, the way it interacts with consumers, governments, aren't really built for that. So, I think that'll be exciting to see how private industry uses the same technology or or the same systems within a different way. Every Nasa ORG achievement has been the collaborative achievement of Nasa ORG and industry. What's going on right now that's a little bit different is Nasa ORG is turning to companies not to direct them what to do but it's turning to companies to build relationships with them because those companies are attracting investment from On space sources and are bringing a different kind of innovation to the table. In the shadow of Nasa ORG 's sprawling Johnson PERSON 's space center the headquarters of startup Axium Space FAC might seem a little modest but their goal is big to build the first ORDINAL commercial space station Buy a former ISS ORG program manager the team has been involved in every mission to the station since it's inception Heritage ORG to start there so we can evolve everybody to the next platform. I like in this to the internet. So, the internet was created. We got very excited and any kid with a good idea and just the basic programming skills could go build a program to do something. We have huge companies that grew out of that and still today DATE , there's new ideas, new Being ORG built. The thing about environment is it's limitless. It's like the data we have access to on the internet. It is limitless. And it is not immediately obvious to us. All the benefits that that's gonna entail. But over time it will become very very obvious. By 2024 CARDINAL action plans to send a central node to attach to the ISS ORG . That will make up the core of their new station This will be followed by crew quarters for 16 CARDINAL people and research and manufacturing modules When the ISS ORG has retired this will break away an additional modules with a lifespan of 30 years DATE will be added and swapped out as they age using a robotic arm Hoping to do all of this for one CARDINAL 50th the cost of the ISS ORG . I mean, when you talk about our vision, it sounds really simple. It really is about The thought process and the cost So that anybody that wants to take advantage of our place in orbit and a microgravity environment can do so and that's really it. I need to go towards my feet. Fantastic NORP vehicle but one of the big things is they have a quite a few Major components outside Which means you have to do an EBA ORG .
Major components outside which means you have to do an EBA as space walk to go fix it a space walk on a good day is 100 hours TIME of crew time to get ready and actually go do the the space watch that we're able to take advantage of the reduce size of components and so our design is gonna have all The components are gonna be in a pressurizing environment So, we know what the basics are. You know, water food Clothing life support and we know how to handle those but now the next step is how do we make it more intuitive And we want to now take advantage of the technology and the and the capabilities have the day DATE to build more luxury into the experience. The objective is to make the environment the background for all the users. Your everyday doing whatever you wanna do on orbit, research, manufacturing, looking out the window, whatever you're there to do. We want you to be able You won't worry about that. 321 CARDINAL , release, release, release. Like virgin gallactic and blue origin actually is hoping to attract space tourists with tickets starting at 55 1 million dollars MONEY for a 10 day DATE mission but that's just one CARDINAL part of the commercial space station market that they think could be worth 37 1 billion dollars MONEY over the next decade DATE Commercial customers are countries who have astronauts in space and want to expand their activity in space and countries who do not yet have a human space flight program who want to send people up and we've now got both research and manufacturing companies Want to do work with us while we're at the International Space Station FAC and on our platform after it separates from my SS. Human space flight is particularly exciting because it's at slice of space that is really nice it hasn't undergone the crowding that satellites have had it hasn't already had that explosive growth it's really ready for that now The first thing I'm really looking forward to seeing happen is the face of our first ORDINAL astronaut on orbit looking back down on us and knowing that we had a hand and sending that person to space and ultimately the separation of ISS ORG when it's ready to be retired in the orbited and then we continue in space independently for That is a stepping off moment for humanity. It's almost like when Neil Armstrong PERSON put that first boot on the moon. This will be the first ORDINAL time that we've gone from a platform of learning how to live in space, to building our permanent home and space. Other private companies also want to use the ISS ORG as the starting point for their own ventures. Aerospace already has one of its inflatable structures attached to the station and others including Sierra ORG and Nevada GPE and Nanarax PERSON have put forward proposals Habitats PERSON are expensive. I think it's a false economy to say, okay, we're done with the international space station. Let's move on to commercial platforms. What I think is much more likely and realistic in what Nasa ORG is certainly driving toward is an incremental transition where commercial platforms attached to the space station or Collaboratively with the space station the next chapter of cannot occur Active engagement of companies. Said that active engagement might not be as customers might not be as drivers it might be in service of government mission objectives we will return American NORP astronauts to the moon not only to leave behind footprints and flags but to build the foundation we need to send Americans NORP Mars LOC and beyond. This proposed mission along with SpaceX PERSON 's own ambition to reach a red planet has opened up a longer term market and some companies are already thinking beyond orbiting habitats like space stations to actually building on a surface of other planets. Skyscrapers Rock PERSON in the middle of the ocean and that for me was a trigger. I thought, wow, this could actually happen and it's always been my dream to put a building on the moon or Mars LOC If he's going out the pieces going it could definitely happen within my lifetime and I wanna be the one to build it. In this warehouse alongside startups from across the US GPE are
Within my lifetime and I wanna be the one to build it. In this warehouse alongside startups from across the US GPE architecture firm AI ORG space factory a refining the production of Marsha They created for a Nasa ORG competition to design the next generation of space habitats on Mars LOC . You know when we started designing our Mars LOC habits at Marsha I think we looked at everything that had been done already and kind of tossed that aside. But what we were given was a certain guidelines from Nasa ORG . They think the best way to build a habitat on Of the moon is to use what they call institution resource utilization so use the materials that are there if you've seen sci-fi movies you might see like glass and steel domes on distant planets but the reality is to ship that kind of material to the moon of Mars LOC would be You would never be able to build in the first ORDINAL place. So, the idea is to send a 3d printing robot which can then harvest the materials you find on a site and build with that. Made from recycled plastic or plants like corn and sugarcane and bath salt a rock Found on Mars LOC and Earth LOC . Hey it's the rock that gives us it's incredible strength We've tested this material it's three CARDINAL times as strong as concrete in compression and it actually has what we call it a tensile capacity prevent itself from being pulled apart which is something concrete's not very good at you need to think at all times how do you optimize the amount of material that you use and and that's also why this thing is shaped Like an egg and if you think of an egg it's a very structurally optimized form. It's very very thin. But it provides the strength that the egg needs and and that's why this is shaped the way that it is. The egg shape as well as the nested shell structure also accommodates for extreme differences in pressure and temperature on the surface of Mars LOC More research still needs to be done to find out how print materials could be gathered and how threeD printing would work in a unique environment of space You're dealing with a completely different set of of physics and environments which is very harsh. Old, you know, the low gravity The vacuum of space, you know, and and finding solutions for how to build our or do anything in space. Just requires a high degree of innovation. There's no such thing as brute force when it comes to space. Like you need to think about the problem Find a very elegant lightweight cost effective Beginning ORG to print with the dirt. We have to perfect this technology on earth And then we go prove it out on the moon And then finally on to Mars LOC . The first ORDINAL customers could include NASA ORG and companies like SpaceX who would lease out these structures for individual missions but before that AI space factory hope there take technology could be monetized as well as transformational here on earth Build more sustainably so rather than building with steel and concrete which are these manufactured very energy intensive materials to go to a site Have a solar powered array that within a hour TIME threeD printer to print in the most sustainable way possible and we never would have found these ways there wasn't for the challenge of building in space. Three, One. Humans have now been Living and working in space More than 15 years DATE . And if we want to keep that up, what do habitats need to look like? And frankly, they can be larger, they can be small, but the future of space habitats really to me comes down to the ability to persistently maintain human presence. Whether that's a few people or many people. That seems Be the dividing line between where we were before and where we wanna be in the future We have to learn how to benefit from what we do on orbit and bring those natural benefits back home so we help ourselves out on the ground while we also learn to live somewhere else and it really at the very deepest level is about survival or space.
Back home so we help ourselves out on the ground while we also learn to live somewhere else and it really at the very deepest level is about survival or species so I get pretty excited when I spin a few moments thinking about what we're off to go do cuz this really is the first ORDINAL step to learning to live live off the planet That first ORDINAL step is just to start of our journey to create a lasting legacy in space. While commercial companies may be stepping into imagine what these new space habitats look like is what's happening inside of them that may unlock the future of space industrialization. On the next episode of Giant Leap ORG we'll visit the private companies who are looking to build their business around manufacturing in space Using the unique properties of microgravity they plan to create new materials with extraordinary qualities that can't be replicated on earth Including new manufacturing techniques that could change how we build large structures in space and even unlock the ability to threeD print full human organs But before lower Thorbit ORG can become a new industrial center we're going to need to take another giant leap This is how it used to work. A real estate agent would lock in the client. It stage the place hold an open house every single weekend DATE and hope that the right buyer walks through that door Years ago DATE you could probably go look at a house and circle back 2 to 3 weeks later DATE and still have an opportunity to make a bid the first ORDINAL time I received a lead through Instagram ORG my mind was blown if you're seeing something and a neighborhood that is established you have 2 to 3 days DATE after the open house in this market to make an offer our world has shifted so much folks Getting comfortable doing business either through social media or 100% PERCENT virtual. Social media like everything else it touches has turn the real estate business upside down. You've heard this trope before. Millennials aren't buying and owning as much as their parents generation. Be it a car, a diamond, or a home. But the lack of ownership is not always by choice. In 2018 DATE , a survey found that 89% PERCENT of millennial Americans NORP want to buy a home. They just can't afford it. As of 20 CARDINAL Millennials of all stripes owned only five% of US GPE housing compared with 15% PERCENT for gen Xers Millennials haven't been able to make these big ticket purchases the same way as their predecessors did. Now, this is down to the financial crisis. We have rising student loan debt and a higher cost of living. Now, millennials are getting older. They're earning more money and saving more. So, now is Airbnb ORG 's want something to call their own. I got married and I have a child so you know looking for more space and thought about the conventional route of young and single living the city and then move out to the suburbs when you have a kid in a wife I've seen a whole bunch of my friends just move on down to the West Palm Beach GPE Miami GPE area Austin Texas PERSON so they are certainly moving out of the city but space was top of mind for the moving out
My friends just move on down to the West Palm Beach GPE , Miami GPE area, Austin GPE , Texas GPE . So, they are certainly moving out of the city but space was top of mind for the moving out. We live in Williamsburg for about 16 plus years DATE and week two DATE in the pandemic we just realized we needed more so we started looking for a house right away Now living Goshen GPE New York GPE which is about an hour and a half TIME from New York City GPE . Instagram accounts like circa houses and cheap old houses offer a glimpse into the perfect suburban life often at a price point not too dissimilar to what adults pay for rent in major cities by the end of 2020 DATE New Yorkers NORP who didn't flee paid an average of $ 2700 MONEY a month for an apartment even as rent prices plummeted during the Demic. Millennials make a large percentage of spending right now and that makes them a valuable consumer for brands. That means they're being corded by everyone out there to spend with them. They grew up online they're comfortable with pretty much anything that you can do there and that's that's buying things, selling things, Craig's List PERSON , eBay ORG , all that. Making $ 100 MONEY purchase on Craigslist ORG or a $ 1000 MONEY purchase on eBay ORG . It's not that much of a leap to go even further. If you're buying AA fancy piece of jewelry House ORG for a one 1 million bucks MONEY The uptick in home demand fueled by the pandemic combined with record low interest rates has made home buying extremely competitive over the last year DATE so much so that some millennials look to social media to shop and actually buy their first ORDINAL house site unseen. I saw sort of something on my Instagram feed and you know, clicked and we ended up seeing this house. The houses weren't really being shown at that time 'cuz we were in full lockdown. We became really interested. One CARDINAL YouTube ORG video, 20 CARDINAL photos. That is it. The red hot housing market spells opportunities for developers targeting this demographic getting eyeballs strictly through social media. People are not looking in the the back section of the times anymore for for real estate listings. Our demographic is between eight 20s to mid 40s DATE and that demographic is spending a lot of time on social media and they're doing a lot of shopping via Instagram and other social media platforms This is Joshua Gelb PERSON in Pele Hamburger PERSON . During the pandemic, the two CARDINAL new york city GPE based developers started Neville House PERSON . A new construction project 2 hours TIME north of the city. Unlike most traditional real estate listings, the pair bypass the use of a broker and advertise their homes directly on Instagram ORG . No No commissions. The higher broker work with them they would do showings on site now you basically Put your renderings on on Instagram NORP and within an hour TIME you have 15 20 CARDINAL replies saying can I come see it directly with you and let's see you tomorrow and and it's just completely changed the the game most people have that image in their head of the quid essential upstate modern cabin said in the woods we've definitely tried to tap into that Create something that's attainable for these people. Say, you can have that. You can be swiping through Instagram NORP and I can be your home too. There's been quite a proliferation of these direct consumer brands there's just tons of them out there it's not that hard to start up a website that's that sells things and get things manufactured For that e-commerce platform. So, like all birds with shoes, With mattresses or Warby Parker PERSON with glasses all of that means a lot more opportunity for brands in the online shopping space so it's natural that real estate would wanna get involved as well with these big ticket items. 10 years ago DATE , the broker would drive the search. Now, I think that my clients text me listings. They have alerts. They find things quicker than we do sometimes cuz we're out and about. I'd say that the buyer is much more involved these days DATE . Social selling is creating brand new ways to shop. So let's look at vintage clothing for example. There are sellers on Instagram ORG finding successful ways to sell one CARDINAL of a kind items. It's that fleeting nature, the ephemeral nature of social media. You post the item online and whoever's first ORDINAL gets that one CARDINAL of a kind item Now real estate has similar scarcity to it there's a one CARDINAL place
Social media you post the item online and whoever's first ORDINAL gets that one CARDINAL of a kind item now real estate has similar scarcity to it there's a one CARDINAL place to buy it's one CARDINAL home one apartment one one thing it's one of a kind But the rise in social media real estate isn't just about the instant gratification researcher Andre Perry PERSON who studies economic inclusion at the Brookings Institute ORG says social media has evolved from the days DATE of online hangout spaces and mood boards to a powerful change agent Primary PERSON source to get news and information but it's not just about social media it's about the movement that we're in the racial justice uprising really gave people a sense of worth and empowerment and so people not only are getting information about what protects In the long run from economic shocks things like wealth. That not only are more millennials buying homes during the pandemic the rate of home ownership among black millennials are at historic highs. The fastest way to accumulate wealth in this country traditionally has been through homeownership. Millennials in particular are saying, hey, I want protection. I wanna live longer. I want my education to go further. Let me acquire wealth in in the best way to do that is through home ownership. When the pandemic hit many of the amenities or the comforts that came along with those living conditions were gone. Folks couldn't go to bars and fancy shops and so you saw instead of people going out and buying clothes, they saved their money Bob Property PERSON and outside of the city generally people are moving to the suburbs to rural areas places where home prices are a little bit cheaper many home buyers are looking for houses outside the major metropolitan areas additionally many home buyers are looking for direct outdoor access and added space as the uncertainty about the virus Millennials are also looking to influencers not just for the latest trends and ticktock dances but to partake in important conversations be it about politics or personal finance or anything in between Real estate ownership. Let's start small. Let's don't be scared to start small. Instead, instead of renting a big house in the hills in California GPE like most artists do by you won us on the flat. Meet folks like Brandon Rule and Charlamagne The God. They're talking about buying homes. Really home buying with a mysterious Process LOC that only a few people could teach me. Now, I can easily log on to clubhouse or Instagram NORP and find literally lessons on how to purchase a home but done in a with savvy and finesse. Today DATE , we're gonna make A greenhouse. Heather having bought her fix her upper sight on scene also look to internet personalities to help figure out how to modernize and to make sure her home was also an investment Lot of confidence. They make it look super easy. How we could do all of those things ourselves. My husband just installed the laundry shoe which is something we never would have thought of if we didn't see an influencer do that and and how how easy it actually is. Really simple. You can do that. If you have any questions, go ahead and message me And in the case of Neville House Josh PERSON and Pele PERSON hope that buyers see these homes as potential secondary income Look at these young families. Look at these products. They're look at our homes and say, here's a turnkey Airbnb ORG . This can serve our family but this can also be the perfect rental. We've tried to strike a balance in the design of a home for, you know, working well as a family home. That's gonna be lived in and also working as a as an investment A lot of this is points to how millennials can utilize and leverage social media to their benefit but it also speaks to again this moment that folks want freedom. So, millennials are really stepping up to this real estate game Taking WORK_OF_ART ownership and building well.
Millennials are really stepping up to this real estate game and and taking ownership and billing well Of course, not everything is as it seems online. While social media can be a useful tool for learning there's still a lot it can't tell you about the home buying experience or living in the suburbs for that matter. We knew going into it by Jeannine for a lot of renovations. We kind of If we buy it at 450 CARDINAL we could put two 300 1000 CARDINAL into the house and really make it ours and our own can't wait to replace in this kitchen and update our built in deep fryer which was Not in the listing photos. We kind of got into the house and we realized that budget was completely That we have a lot of people who see our design on Instagram NORP they say I love it can you come build this on my property and then they'll send us a lot which they bought sight unseen during COVID and because of site conditions or zoning it's virtually unbuildable I think we all know that what you see on Instagram NORP and what you see in real life or two CARDINAL very different things so while we can definitely as brokers create these fantastic narratives the one recommendation that I would give is do your homework don't believe You say that's not to say that you know there's dishonesty or anything where people are trying to manipulate you but not everything you see is This shift towards social media house hunting may also help to bring equilibrium to a market that his historically disadvantaged specific groups of buyers Of the traditional ways that people got mortgages or or loans often precluded black people because they they deemed us too risky for those loans what technology there's ways to get around that as long as more black people get educated on racism Discrimination in lying to figure out ways to get around that racism. When I was 24 years old DATE I saw the UFC ORG on a pay per view on TV Was so overwhelmed by the athleticism, the skill, Hey portal And I just fell in love with it. Part of UFC ORG 's appeal. Is it doesn't look like a ballettic display of marshal talent in mastery as much as it looks like a bar fight. We choose to do this because we love the sport but it is a business and if you do not treat it like a business I guarantee you if it's a promoter is And you will be left broken, broken at the end of your career. Each of us have an individual story but as with anything you take enough of these individual stories and you see not only crossover but intersectionality. Former UFC ORG fighters that are suing the UFC ORG scored a key legal victory on Thursday DATE when a federal judge said he would grant their lawsuit class action status Fights in every major US GPE .